Aurobindo Pharma, a leading pharmaceutical company, has announced a major development in its immunology products portfolio through its wholly-owned subsidiary, CuraTeQ Biologics. The subsidiary has entered into an exclusive license agreement with BioFactura, a US-based biopharmaceutical company, to commercialize a biosimilar product known as BFI-751.
BFI-751 is a proposed biosimilar to Stelara (Ustekinumab), an important antibody used in the treatment of various conditions such as Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis. By blocking interleukins IL-12 and IL-23, it helps manage these diseases effectively.
This partnership aims to expand Aurobindo Pharma's presence in the biosimilars market, which is witnessing significant growth worldwide. The global drug sales of Ustekinumab were estimated to be close to $10 billion in 2022, indicating a substantial market opportunity.
Under the terms of the agreement, CuraTeQ has secured exclusive license rights to commercialize BFI-751 in major regulated markets, including the United States, European Union, United Kingdom, and Canada. The deal also involves a profit-sharing arrangement, with CuraTeQ receiving 57-60 percent of the profits, depending on the market.
Additionally, BioFactura will receive license fees of $33.5 million, which will be distributed across different milestones leading to commercialization in the regulated markets. CuraTeQ will also have global manufacturing rights for BFI-751 and plans to produce the product at its facilities in Hyderabad.
Dr. Satakarni Makkapati, CEO of Biologics, Vaccines, and Peptides at Aurobindo Pharma, expressed enthusiasm about the Ustekinumab biosimilar advancing to Phase 3 clinical studies. He emphasized that the product aligns well with the company's expanding immunology products portfolio, and Aurobindo Pharma intends to leverage its strong market presence to successfully commercialize the biosimilar.
This strategic partnership is yet another step in Aurobindo Pharma's efforts to establish itself as a prominent player in the biosimilars space. The company's stock has been performing impressively, gaining over 70 percent in 2023 so far. The positive outcome of its breast cancer biosimilar product in a Phase-3 clinical trial further strengthened investor confidence in Aurobindo Pharma's capabilities.
Analysts at ICICI Securities have expressed optimism about Aurobindo Pharma's prospects, highlighting its focus on biosimilars, peptides, and the production-linked incentive (PLI) scheme. These initiatives are expected to drive growth starting from the fiscal year 2025. With improved traction in both oral solids and injectables, along with moderation in input costs, Kotak Institutional Equities predicts a strong expansion in Ebitda margin for FY24.
As Aurobindo Pharma continues to forge strategic alliances and expand its product portfolio, the company is well-positioned to make significant strides in the biosimilars market and contribute to the advancement of healthcare globally.
