Merck KGaA, the Germany-based science and technology company had divested its biosimilars business to Fresenius Kabi as part of its strategy for healthcare business to focus on the pipeline of innovative medicines early this year.
Fresenius Kabi has now announced the successful completion of the € 170 million deal. The transaction comprises the entire development pipeline of Merck’s biosimilars and an experienced team of employees located in Aubonne and Vevey, Switzerland.
The purchase price of €656 million will be mainly cash flow financed. Thereof, €156 million have been paid upon closing. Up to €500 million are milestone payments strictly tied to achievements of development targets in the coming years.
Fresenius, with a market capitalization of more than 40 billion euros, runs businesses ranging from kidney dialysis and drug manufacturing to hospital management.
Fresenius has for years enjoyed low borrowing costs because of its diversified businesses in an industry largely immune to swings in the business cycle.
Merck’s biosimilars pipeline is focused on oncology and autoimmune diseases, Fresenius said, and all clinical studies for the pipeline are on track. The company also reported that antitrust authorities have given the transaction the go-ahead without imposing conditions.
