Sandoz bought the Cimerli (ranibizumab-eqrn) business from Coherus Biosciences, the companies announced Monday morning.
In January, Sandoz and Coherus entered into an agreement on a $170 million cash deal for Cimerli, including its biologics license application, product inventory, ophthalmology sales, field reimbursement talent and proprietary commercial software.
As an injectable anti-VEGF therapy, Cimerli is indicated to treat retinal diseases that can result in vision loss and blindness if untreated. The drug is also approved by the Food and Drug Administration as a biosimilar to reference product Lucentis from Gennetech.
The goal of the acquisition is for Sandoz to continue building out its ophthalmic portfolio and further bolster the U.S. biosimilar market.
“Today we further expand the Sandoz biosimilar portfolio, while advancing our mission in the US of pioneering patient access to more affordable and much-needed medicines,” Keren Haruvi, president of Sandoz North America, said in a statement. “With the addition of Cimerli to our existing ophthalmology franchise, we can now offer even more treatment options for US patients with vision impairment and loss.”
The move paints a more specific outline of what Sandoz’s strategic ambitions are more than a year since it spun off from Novartis.
In its most recent earnings report released in October, Sandoz achieved $7.1 billion in net sales year-to-date, marking a 6% increase at constant currency (CC).
The spinoff’s generics division performed well during the quarter, though its biosimilars segment also generated double-digit growth over the same period.
The company also confirmed its full-year financial guidance, with net sales expected to grow by mid-single-digit at CC as well as a core EBITDA margin in the range of around 18% to 19%.
Additionally, Sandoz’s U.S. subsidiaries recently reached a $265 million settlement agreement in generic drug antitrust class action litigation with direct purchaser class plaintiffs.
As for Coherus, the divestiture exemplifies its move towards focusing the business on the oncology space.
“This transaction sharpens the focus of our business as we advance our novel immuno-oncology pipeline and continue the launch of Loqtorzi in nasopharyngeal carcinoma and Udenyca onbody,” Coherus CEO Denny Lanfear said in a separate media release. “Completion of this transaction allows us to pay down debt, reduce interest costs, reduce headcount and overhead costs, thereby significantly advancing our efforts to become a sustainable and growing oncology business.”
