Boehringer Ingelheim Corporation Considering Sale of Its U.S.-Based Generics Biz
January 15, 2015
By Krystle Vermes, BioSpace.com Breaking News Staff
German drugmaker Boehringer Ingelheim announced today that it may sell Roxane Labs to focus on the development of new pharmaceuticals. Roxane Labs, which is based in the U.S., serves as Boehringer Ingelheim’s generic drug unit.
A decision has not officially been made, but Boehringer said in a statement today that it is exploring strategic options including a sale. Roxane is responsible for producing and marketing Boehringer’s generic drugs.
An insider told Bloomberg that Roxane could bring in as much as $2.4 billion if Boehringer decides to sell. Morgan Stanley is allegedly working with the company on the financial matters surrounding the potential sale, but the company refused to comment.
A spokeswoman for Boehringer Ingelheim told Bloomberg in an email statement that the company is “exploring strategic options” for Roxane.
As it sorts out matters pertaining to its generics business, Boehringer is looking ahead to supporting the production of biologics.
Sanofi and Biologics
On Jan. 15, Boehringer Ingelheim announced that it had entered a strategic agreement with Sanofi, the France-based therapeutics developer, to create monoclonal antibodies. The goal is to reinforce Sanofi’s manufacturing capacity and support upcoming product launches. Financial terms of the deal were not released.
Approximately 72 percent of Sanofi’s research and development projects are in biologics, and half of them are monoclonal antibodies. Sanofi will now have access to Boehringer’s capabilities to transfer and manufacture therapeutic mAbs.
“We are looking forward to this collaboration with Sanofi. This agreement reflects the strategy of Boehringer Ingelheim to be dedicated and committed to the manufacturing of highly innovative new biologic entities,” said Uwe Bücheler, corporate senior vice president of Boehringer Ingelheim Biopharmaceuticals.
Initial product transfers will begin in early 2015. Sanofi has seven growth platforms: diabetes solutions, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health and Genzyme.
“Boehringer Ingelheim is a highly capable and experienced partner to complement our continued alliance with Regeneron Pharmaceuticals, Inc. and the investments we are making in building our own internal capabilities as we prepare for a wave of potential new product launches in the coming years,” said Wolfram Carius, senior vice president of biologics at Sanofi. “This collaboration reinforces Sanofi’s commitment to our strong biologics pipeline and will enable us to take the necessary steps to provide access to high quality therapeutic monoclonal antibodies to meet the needs of patients.”