Global pharmas pay attention to the biosimilar market driven by Korea

Global pharmas pay attention to the biosimilar market driven by Korea

ariv Hefez (Vice President, Head of Business Development of Merck Biosimilars) speaks on ‘The role of Asia in a global biosimilar business strategy and partnership opportunities’ at ‘Pharma Association Conference (PAC) 2014’

The first annual conference co-hosted by Korea Pharmaceutical Manufacturers Association (KPMA) and Korean Research-based Pharma Industry Association (KRPIA) under the theme of ‘Global Partnering for Open Innovation’ was attended by officials responsible for clinical trials and R&D of global pharmaceutical companies to share expertise and know-how on R&D partnership, drug discovery and business development with their counterparts from Korean companies.

“There are growing expectations of biosimilars around the world, and this field will be a new growth driver in the pharmaceutical industry,” Hefez emphasized. According to data, five of the top 10 blockbuster drugs in terms of global sales in 2013 are biologics and this represents a 12% rise from 2012. Experts say it is natural for leading global pharmaceutical companies to pay more attention to biosimilars as patent protection is expiring for their innovator biologics which have been widely used in many therapeutic areas as the latest treatment option.

“Biosimilars require technology comparable to innovator drugs as they must prove bioequivalence before marketing. It is more than what is needed to manufacture a usual generic drug, so a company building a leading position will gain a new competitive advantage,” he said.

During the PAC 2014 session, Hefez emphasized global commercialization of a product, experience and competence of a partner and understanding of cultural difference as key elements to ensure a successful partnership in the biosimilar area. He also shared Merck’s experience and know-how on partnerships in Asia for biosimilar business, including what should be considered in exploring partnership and the position of emerging markets in the global biosimilar market.

“Among emerging markets, Korea has a leading position in this area as biosimilar products to treat rheumatoid arthritis and breast cancer are already approved, while major biopharmaceutical companies are investing to develop various biosimilars. Merck is positively considering a partnership with Korean developers that have advanced technology. This partnership will help Korean-made excellent biosimlars enter the global market and contribute to their stronger market presence,” he said.

Launched in 2012, Merck Serono’s biosimilar business unit has been working on partnership deals for global commercialization. “Merck entered the biosimilar market because it expected the business will generate an important competitive advantage in the future and it already had success factors internally. Merck is now partnering with Indian generics company Dr. Reddy's Laboratories in oncology,” he added.