People close to the matter said that Aurobindo is in talks with a European drugmaker to obtain permits for at least four biosimilar drugs to treat cancers and autoimmune disorders in a deal worth approximately $200 million, livemint.com reported.
One person explained that the deal, which is expected to be reached by the end of the year, will give Aurobindo rights to manufacture to develop, manufacture and market the biosimilars in Europe.
Two of the people revealed that Aurobindo is seeking to manufacture biosimilars of Amgen's Enbrel, Johnson & Johnson's Remicade and Roche's Avastin and Herceptin.
A source noted that the deal would give Aurobindo a head start on rivals such as Biocon, Dr. Reddy's and Intas Pharmaceuticals, as some of the biosimilars are currently in clinical development.
"It’s a good step by the company," remarked Sarabjit Kour Nangra, vice president of research, pharma, at Angel Broking, adding "biosimilars is next big opportunity, but it's a long haul."
"Biosimilars are a lucrative category of medicines, but given the high cost of development, and rigorous regulatory compliance requirements, Indian companies with exception of Biocon and Dr. Reddy's have largely stayed away from regulated markets," another analyst countered.