India-based pharmaceutical company Intas Pharmaceuticals has signed an agreement with Coherus BioSciences to acquire the latter’s Udenyca franchise for up to $558.4m.
Udenyca (pegfilgrastim-cbqv) is a biosimilar to Neulasta (pegfilgrastim), developed by Coherus, and approved in the US to reduce the risk of febrile neutropenia.
Under the terms of the agreement, Coherus will receive an upfront payment of $483.4m, and $75m in potential net sales milestone payments.
In exchange, Intas will receive identified assets related to the Udenyca franchise, including pre-filled syringe, autoinjector, and onbody injector, along with identified liabilities.
The proposed acquisition is expected to be completed by the end of the first quarter of 2025, subject to certain customary closing conditions.
The conditions include approval by Coherus shareholders, termination of the waiting period under the Hart-Scott-Rodino Antitrust Act, and approval by CFIUS, among others.
Intas Pharmaceuticals executive chairman and managing director Binish Chudgar said: “Acquiring the Udenyca business in the US is appealing for two reasons: the product’s impressive sales and uptake, and its range of administration options that give patients an opportunity to align their needs with a treatment plan.
“Having an on-body injector within our portfolio will allow us to provide immune supportive care to patients in a variety of settings, including at home, a benefit to patients who live far away from their care centre.”
Upon closing of the transaction, Accord BioPharma, the US division of Intas, will assume full responsibility for the Udenyca franchise in the US.
Accord US president Chrys Kokino said: “By adding Udenyca to our growing portfolio of biosimilars, we will strengthen our business footprint in the US.
“With an expanding presence in the market, we can fuel the internal innovation and external expansion needed to deliver more accessible treatment options to patients.”
Coherus intends to use a part of the proceeds to repay its $230m existing convertible notes due April 2026, and $49.1m to buy certain royalty obligations related to Udenyca.
Also, the company intends to advance its next-generation, immuno-oncology portfolio in combination with Loqtorzi, a next-generation, differentiated PD-1 marketed in the US.
JP Morgan Securities served as financial advisor and Latham & Watkins as legal counsel to Coherus, on this transaction.
Coherus chairman and CEO Denny Lanfear said: “The proposed divestiture of Udenyca represents the successful execution of our strategy to focus R&D and commercial resources on Coherus’ innovative immuno-oncology portfolio and to strengthen our financial position.
“We have created significant value with our Udenyca franchise, and this proposed transaction allows us to monetise that value in order to maximise the opportunity ahead for Loqtorzi (toripalimab-tpzi).
“In addition, by paying off our convertible notes in their entirety, we will significantly improve our capital structure and align our operational footprint with our strategic focus.”
