Companies
Intas eyes Biogen’s biosimilars for $1 bn
Summary
Ahmedabad-based Intas is being advised by Goldman Sachs Group Inc. and has submitted a non-binding bid and is seeking to put a binding one later this month
MUMBAI : Intas Pharmaceuticals Ltd is preparing a bid for Biogen Inc.’s biosimilar business in a transaction that could be valued at as much as $1 billion, two people familiar with the talks said.
Ahmedabad-based Intas is being advised by Goldman Sachs Group Inc., one of the people said, adding that the company has submitted a non-binding bid and is seeking to put a binding one later this month. “This is still at an early stage," the second person said on condition of anonymity.
Intas is not new to large acquisitions. It acquired Actavis’ UK and Actavis Ireland businesses from Teva Pharmaceutical Industries Ltd in 2016 for around £600 million, establishing a presence in Europe. Biogen’s biosimilar unit may be attractive because of the firm’s strong European portfolio, where Intas has a strong presence, a third person familiar with Intas’ strategy said.
The American company’s portfolio of biosimilar medicines is primarily focused on immunology and ophthalmology, with over 70 biosimilars approved in Europe and more than 35 in the US, according to the firm’s website.
Senior executives at Intas did not immediately respond to emailed requests for comment on Tuesday, while a Goldman Sachs spokesperson declined to comment.
A Biogen spokesperson declined to comment on what he termed market rumours. “We have previously announced in earnings that we are evaluating strategic options for the biosimilars business and will provide further updates on the process as appropriate," the person said.
An Icra credit rating report on 22 September 2022 said Intas has made significant investments in its biosimilar portfolio. “Intas Pharmaceuticals derived sizeable revenue for this (biosimilar) segment from the domestic markets in FY22, where it sells 14 commercialized molecules. It was one of the first Indian companies to launch two biosimilar products in the European markets, in which it enjoys a healthy market share among domestic players. Intas has made high investments in the biosimilars business in recent years and is expected to continue over the near to medium term," the report said.
Icra also noted that Europe has traditionally been Intas’ largest market, accounting for 39% of its consolidated revenues in FY22.
Intas’ profit rose to ₹2,679.3 crore in FY22 from ₹2,289.8 crore in the previous year. Operating revenue rose to ₹18,416.1 crore in FY22 from ₹16,492.8 crore in FY21, according to Icra.
Biogen said in its recent earnings calls in April and July that it is looking at “strategic options" for its biosimilar portfolio. Biogen’s biosimilar business generated revenue of $195 million in the June quarter, a slight increase from the year earlier.
