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Samsung and Quintiles Team Up to Make Biosimilars

Electronics powerhouse forges into biosimilars.

MARIE DAGHLIAN

The Burrill Report


Samsung, South Korea’s largest conglomerate and a global electronics powerhouse, is aiming to become a major player in the medical arena to drive growth. It has teamed up with Quintiles Transnational, a U.S.-based global contract services company, to form a joint venture that will focus on biosimilars, copies of top selling biologics that have lost patent protection. The company plans to target Johnson & Johnson’s arthritis drug Remicade and Roche and Biogen Idec’s cancer drug Rituxan, among others.

The joint venture will be will be funded with $266 million and start building a plant in Incheon, South Korea in the first half of the year that will make biosimilars, Samsung said in a statement. Samsung Electronics and Samsung Everland will each own a 40 percent stake in the venture, with Samsung C&T and Quintiles each holding 10 percent, Samsung said in a statement. The affiliates will focus on production, while Quintiles will help develop technologies. Samsung plans to begin supplying biosimilars in the first half of 2013, as they come off patent, and sell them worldwide.

Samsung first announced its intentions to enter the biosimilars market in 2009, targeting the biomedical market as a hot area for growth in light of the aging world population. Biologics currently make up five of the world’s ten best-selling drugs. In 2010, the maker of mobile phones and TVs said it would invest up to $1.9 billion over the next ten years to build up its biomedical business.

The Korean government is also backing the development of biosimilars with a goal of snaring 22 percent of global market share by 2020. Its government has said the global biosimilars market could be worth $14.5 billion by 2015 and will experience a huge growth spurt as many blockbuster biologics begin to lose patent protection. It had already enlisted Samsung as a partner in its effort to develop the sector in the country.

Samsung Group may also set up another biosimilar joint venture, executive vice president Kim Tae Han said in a press briefing, reported Bloomberg. He said that Samsung plans to ultimately produce its own biopharmaceuticals after gaining experience making them. Samsung plans to spend about half of its $1.9 billion budget on developing biosimilars and use the other half to build factories, according to Kim, as reported by Bloomberg.

DEALS FOR THE WEEK ENDING FEBRUARY 25, 2011
Global Venture Financings
Company Location Amount Raised (USD M) Principal Activity
NeoVista Fremont, CA 33.8 Therapeutics
Predictus BioSciences West Roxbury, MA 0.7 Diagnostics
Acetylon Pharmaceuticals Boston, MA 12.4 Therapeutics
Biopharmacopae Design  Canada 2.0 Wellness
HTG Tuscon, AZ 15.7 Tools/Technology
Pharmaron Holding Beijing, China 40.0 CRO
Amendia Marietta, GA 5.0 Medical devices
Total Raised US 42.0
Total Raised Non-US 67.6
Grants and Contracts
Company Funding Agency Amount Raised (USD M) Principal Activity
Chembio Diagnostics NIH SBIR Phase II grant 2.9 Rapid test for TB
Biocryst Pharmaceuticals HHS Contract 55 Influenza drug
Total Grants and Contracts 57.9
Public Financings
Company Ticker Amount
Raised (USD M)
Financing Type
Rosetta Green (Israel) TASE:RSTG 6.1 IPO
Zhejiang Jolly Pharmaceutical (China) SHE:300181 71.5 IPO
Amorfix Life Sciences (Canada) TSX:AMF 0.1 PIPE
Biotec Pharmacon (Norway) OSE:BIOTEC 1.3 PIPE
ImmunoCellular Therapeutics OTC:IMUC 8.1 PIPE
Intercell (Austria) Vienna:ICLL 45.6 PIPE
Mazor Robotics (Israel) TASE:MZOR 6.3 PIPE
Chelsea Therapeutics CHTP 35.0 Follow on
Palatin Technologies PTN 23.0 Follow on
GLG Life Tech (Canada) TSX:GLG 58.2 Follow on
PLC Systems OTC:PLCSF 4.0 Debt
CytoSorbents OTC:CTSO 1.3 Debt
SemBioSys Genetics (Canada) TSX:SBS 4.0 Debt
Total Public Financings-US 71.4
Total Public Financings-Non-US 193.1
M&A 
Acquirer Target Deal Value
(USD M)
Focus
Forest Laboratories Clinical Data 1,200.0 Specialty pharma
Quest Diagnostics Athena Diagnostics (Thermo Fisher Scientific) 740.0 Diagnostics
Gilead Sciences Calistoga Pharmaceuticals 600.0 Cancer
Kyowa Hakko Kirin (Japan) Pro Strakan Group (United Kingdom) 474.0 Cancer
Eurofins Scientific (Belgium) Lancaster Laboratories (Thermo Fisher Scientific 200.0 Contract services
Viropro Alpha Biologics (Malaysia) 21.0 CMO
Sun Pharmaceuticals (India) Caraco Pharmaceuticals Laboratories N/A Generics
Monsanto Divergence N/A Agbio
TiGenix (Belgium) Cellerix (Spain) N/A Cell therapy
Alliances 
Company/Licenser Company/Licensee Deal Value
(USD M)
Focus
Quintiles Samsung (Korea) 265.5 Biosimilars joint venture
ViroMed (Korea) Enlyton 4.7 Molecular imaging license
Avantra Biosciences MedTrust Online N/A Diagnostics partnership
Grifols (Spain) Novartis (Switzerland) N/A Diagnostics marketing agreement
Naviscan Neoprobe N/A Imaging technology collaboration
Allon Pharmaceuticals LambdaGen  N/A Drug development collaboration
Proacta Yakult Honsha (Japan) N/A Cancer drug development collaboration
Cell Signaling Technology Astellas Pharma (Japan) N/A Personalized medicine partnership
Covaris Caliper Life Sciences N/A Next-gen sequencing co-marketing agreement
Ingenuity Systems Covance N/A Next-gen sequencing collaboration
PPD Elan (Ireland) N/A Drug development collaboration
Amyris Givaudan (Switzerland) N/A Renewable chemicals partnership
bioMerieux (France) Ipsen (France) N/A Personalized medicine partnership



February 25, 2011
http://www.burrillreport.com/article-samsung_and_quintiles_team_up_to_make_biosimilars.html

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