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Report: 700 follow-on biologics therapies currently moving through pipelines worldwide

BY Michael Johnsen

PHILADEPHIA – According to a report released Monday by Thomson Reuters BioWorld, there are currently 700 follow-on biologics therapies moving through pipelines with many already approved, with 245 biopharma companies and institutes developing or already marketing follow-on biologics in markets throughout the world. Biosimilars are expected to account for approximately one-quarter of the $100 billion worth of sales stemming from off-patent biologics by the end of the decade.
 
South Korea is a notable standout in the race for global leadership in this space and India anticipates biosimilars becoming the most important economic and therapeutic component of its biopharma industry, Thomson Reuters stated.
 
The study provides a comprehensive view of this emerging market with a listing of approved biosimilars, company and deal terms for more than 100 alliances, and an examination of global markets.
 
Key highlights from the report include:
 
  • Big pharma and generics makers face a steep learning curve. While generic makers currently lead the pack, the expertise in this market is held by the biologics makers. New pure-play biosimilar makers funded by governments and private investors also have a strong presence in this arena;
  • Biosimilars promise to deliver big savings. Typically offering 20% to 30% discounts from innovator biologics, biosimilars are expected to deliver $11 billion to $33 billion in savings across the European Union by 2020;
  • Start-ups working to make and sell biosimilars in emerging territories could be the "David" ticket to beat pharma "Goliaths" that dominate those realms;
  • Slow market uptake of biosimilars in the European Union may not also hold true for the United States. Unlike most of the European Union, the United States will allow interchangeability, which is expected to speed adoption and lead to lower prices;
  • The World Health Organization recently proposed a voluntary, global naming scheme that could level the playing field for biosimilars and their reference biologics; and
  • In many parts of the world, follow-ons offer new hope to patients who previously did not have access to pricey biologics, bringing the power of biologics for the first time to markets in Africa, Asia, Eastern Europe and Latin America.
"Rather than forgo the benefits of biologics, governments and payers are counting on biosimilars to dramatically change drug development and patient costs by reducing the price tag of important biologics and increasing access to life-saving drugs," said Jon Brett-Harris, managing director of Thomson Reuters Life Sciences. "For this to happen, biosimilars must deliver the power of the reference drugs at a price developing countries can afford and gain the confidence of the marketplace. They have to create their own market."
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L’Oréal, Puma sign licensing deal

BY Antoinette Alexander

CLICHY, France and HERZOGENAURACH, Germany — Beauty brand L’Oréal has inked a licensing deal with sports company Puma for beauty products.

The deal is effective Jan. 1, 2015. Puma’s license contract with Procter & Gamble will terminate on Dec. 31.
 

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Diplomat Pharmacy commences IPO

BY Michael Johnsen

FLINT, Mich. — Diplomat Pharmacy, one of the nation's largest independent specialty pharmacies, on Monday announced that it has commenced its initial public offering of 13.3 million shares of its common stock.  
 
The initial public offering price is currently expected to be between $14 and $16 per share. Diplomat's common stock has been approved for listing on the New York Stock Exchange under the symbol "DPLO," subject to official notice of issuance.
 
Diplomat expects to use the net proceeds from the initial public offering to repay indebtedness and for working capital and other general corporate purposes. 
 
Diplomat is selling 10 million shares of common stock, and certain selling shareholders of Diplomat are selling 3.3 million shares of common stock. The selling shareholders intend to grant the underwriters a 30-day option to purchase up to an additional 2 million shares of common stock to cover over-allotments, if any. 
 
Diplomat will not receive any proceeds from the sale of shares by the selling shareholders, including sales by the selling shareholders pursuant to the underwriters' overallotment option.
 
Credit Suisse Securities and Morgan Stanley & Co. are acting as lead book-running managers. Additional book-running managers are J.P. Morgan Securities and Wells Fargo Securities. William Blair & Co. and Leerink Partners are acting as co-managers.
 
A Form S-1 registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time that the registration statement becomes effective. 
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