AbbVie Inc (NYSE:ABBV) has announced that it has secured a deal with Samsung Bioepis and Biogen Inc (NASDAQ:BIIB) as part of measures aimed at warding off Humira biosimilars in the U.S.
The deal involves a settlement between AbbVie, Samsung, and Biogen and it is aimed at keeping Humira competition at bay in the U.S until June 30TH, 2023. However, the deal does not affect other markets and so the biosimilar called Imraldi is still scheduled to launch in EU countries in October.
Samsung Bioepis is expected to pay royalties from upon the launch of the biosimilar but AbbVie will not pay as part of the deal. The three companies have agreed to drop all the legal actions that were pending and so far the financial terms of the deal have not been disclosed. AbbVie has been keen to make sure that Humira does not face competition, especially in the U.S market. This is because any competition means the drug would have to share the market and thus lose a chump of the revenue that it makes from Humira.
Humira is one of the company’s biggest sellers. Just last year alone, the drug achieved an impressive $18.4 billion in revenue which is more than 65 percent of the company’s total revenue. This means that Humira is the breadwinner and thus the need to protect it from biosimilars.
“The Samsung Bioepis settlement reflects the strength and breadth of AbbVie’s intellectual property. We continue to believe biosimilars will play an important role in our healthcare system, but we also believe it is important to protect our investment in innovation. This agreement accomplishes both objectives,” stated AbbVie’s General Counsel and executive vice president of external affairs, Laura Schumacher.
AbbVie reported that Samsung’s license for marketing its Humira biosimilar will start on June 30, 2023. However, this means that Samsung will pay royalties for licenses from Humira’s patents. The recent deals between the three firms also mean that it is less likely that other manufacturers will be able to secure deals to allow them to launch biosimilars before 2023.
AbbVie stock closed the latest trading session on Thursday at $92.21.