Mylan, Biocon To Collaborate On Generic Biologic Drugs

   DOW JONES NEWSWIRES 
 

Mylan Inc. (MYL) and India's Biocon Ltd. (532523.BY) have agreed to collaborate on developing, making and marketing generic biologic drugs.

The move comes amid a struggle in the pharmaceutical industry, as brand-name biologic makers such as Roche Holding AG's (RHHBY) Genentech unit have worked to fend off generic versions of their products.

Biologic drugs are complex and expensive medicines derived from proteins manufactured in living cells. Traditional drugs are made by mixing chemicals.

Mylan Chairman and Chief Executive Robert Coury said the deal combines Biocon's scientific expertise and strong track record of product development with Mylan's global footprint.

Biocon Chairman Kiran Mazumdar-Shaw said the company was pleased to find a partner in Mylan to speed up its work in generic biologics, especially in monoclonal antibodies, which he said were "emerging as the most dominant class in biologics."

Under the deal, the two companies will share development, capital, and other costs to bring the products to market. Mylan will hold exclusive marketing rights in the U.S., Canada, Japan, Australia, New Zealand and in the European Union and European Free Trade Association. The two companies will share commercialization rights in the rest of the world.

The other financial terms of the deal weren't disclosed.

Mylan became more global through its 2007 acquisition of Merck KGaA's (MRK.XE) generics business, giving Mylan more presence in Europe and Asia than many of its peers.

Mylan's shares closed Friday at $13.42 and haven't traded premarket.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]