Viropro, Inc. to Unlock Value from its Biosimilars Portfolio
IRVINE, Calif.--(BUSINESS WIRE)--May 16, 2012 - VIROPRO (VPRO.PK). Viropro creates a biosimilars technology subsidiary.
Viropro, Inc. creates a technology subsidiary to focus on the burgeoning International market for biosimilar drug therapeutics. Over the past year, several of the large pharmas have tied up with Contract Research Organizations (CROs) and/or with Contract Manufacturing Organizations (CMOs) to enter the field of biosimilars. With the US FDA publishing guidelines for biosimilar approvals earlier this year, and guidelines already in existence in the European Union, this activity has taken a leap forward as companies jostle for position to capture parts of what is expected to be lucrative, multi-billion dollar annuities for years to come. According to a Frost & Sullivan report (PharmaTimes, U.K., May 11, 2012), the European biosimilars market is forecast to grow to $3.99 billion in 2017 from $172 million in 2010. That is equivalent to compound growth of 56.7% a year. The expiration of patents for blockbuster biologics is expected to drive the growth.
Viropro International, Inc. (VPI), a 100% subsidiary of Viropro, Inc., will house Viropro, Inc.'s biosimilar technologies and associated technical developments for the purpose of commercialization through external partnerships. The starting line-up and portfolio consists of sophisticated biosimilar molecules such as Ranibizumab (biosimilar of Lucentis®), Trastuzumab (-Herceptin®), Rituximab (-Rituxan®), Bevacizumab (-Avastin®), Infliximab (-Remicade®) and Etanercept (-Enbrel®). It is from this portfolio that Viropro signed a Letter of Agreement with Spectrum Pharmaceuticals, Inc. for Rituximab, and is in active discussions with potential clients for its other biosimilar technologies. (“®” are registered trademarks of their respective owners.)
For client development contracts where Viropro would take a process from the basic clone through to clinical production, Viropro estimates the combined, aggregate realizable value of its biosimilars portfolio to be in the range of $33 million to $42 million, depending upon market dynamics of the individual products.
Dr. Datar, President & CEO of Viropro, Inc. draws the following distinction in advancing such a set up: Viropro International, Inc., located in Montreal, Canada, currently licenses certain technologies developed at the renowned Biotechnology Research Institute (BRI) in Montreal, and enjoys a close working relationship with BRI. It thus makes sense for Viropro, Inc. to concentrate its technology development activity through VPI. Viropro, Inc. will continue to focus on developing a global, one-stop shop for “Biotech Contract Services,” irrespective of the type of molecule that is being developed for its clients. VPI, on the other hand, allows Viropro, Inc. to unlock the value of the Company's biosimilars portfolio without interfering with Viropro, Inc.'s contract services operations. Dr. Datar additionally notes this is an exciting time to be positioning the Company's efforts on establishing partnerships in two fast growing sectors of biotechnology – contract services and biosimilars.
About Viropro, Inc.:
Viropro, Inc. conducts operations through its subsidiaries Viropro International, Inc., Biologics Process Development, Inc., Alpha Biologics Ltd. and Alpha Biologics Sdn. Bhd. Viropro's principal objective is to provide high-yield development and GMP manufacturing services to biopharmaceutical companies in global markets with unmet medical and/or market needs. The Company specializes in the transfer of its core and proprietary technologies for industrial production of biopharmaceutical therapeutic proteins for the treatment of various diseases including cancer, diabetes, hepatitis and multiple sclerosis. (www.viropro.com)
Viropro Inc. Safe Harbor Statement
Except for any historic information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. Any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, goals, assumptions of future events or performances are not statements of historical fact and may be "forward-looking statements". Forward-looking statements in this release may be identified through the use of such words as "expects", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements, which involve numerous risks and uncertainties, including the Company's ability to market its products and services in a competitive environment as well as other factors.
Contact: Viropro, Inc.
Claude Gingras, Chief Financial Officer
Posted: May 2012