Baxter, Coherus Biosciences in $246m biosimilars deal

Baxter and Coherus Biosciences have entered into an exclusive collaboration to develop and commercialize a biosimilar of Amgen's rheumatoid arthritis drug, etanercept, for Europe, Canada, Brazil and certain other markets.

Under terms of the agreement, Baxter will make an upfront payment of $30 million to San Francisco-based Coherus Biosciences, who will be in charge of conducting development. Baxter will then make additional milestone payments of up to $216 million.

"The collaboration allows us to partner with a company that brings demonstrated capabilities with potential to support accelerated entry into the biosimilar market for Baxter. This collaboration and Baxter's ongoing relationship with Momenta expand Baxter's pipeline, which now includes several biosimilars in the areas of immunology and oncology. As an established biologics leader, we're looking forward to entering the market with biosimilar treatments that will broaden patient access to care."

Ludwig Hantson, Ph.D., president of Baxter's BioScience business.

"We are pleased to be partnering with Baxter, a premier healthcare company that shares our strategic commitment to biosimilars. This agreement further validates our unique business model and capability to globally develop products from conception through approval."

Denny Lanfear, chief executive officer of Coherus.