Pharma major Lupin has entered into a strategic licensing and supply agreement with Czech-based Zentiva to commercialize its biosimilar version of Certolizumab Pegol across multiple global markets.
Under this agreement, Zentiva will be responsible for marketing and distributing the biosimilar in Europe and CIS (Commonwealth of Independent States) countries. Lupin, on the other hand, will handle commercialization in the rest of the world, including key markets like the United States and Canada.
Lupin to develop and supply; Zentiva to commercialize in Europe
While Lupin will manage the development, manufacturing, and supply of the biosimilar, Zentiva will lead the commercial rollout in Europe. “Zentiva will leverage its extensive European commercial infrastructure and regulatory expertise,” the company said in an exchange filing.
The agreement excludes territories such as Australia, Japan, Brazil, the Philippines, and India.
Lupin to receive up to $50 million in milestone payments
As part of the agreement, Zentiva will make a non-refundable milestone-based payment of up to $50 million to Lupin. This includes an upfront payment of $10 million at the time of signing the agreement. Both companies have also agreed to jointly invest in the development of the biosimilar.
Profits from the defined markets will be shared between Lupin and Zentiva.
No acquisition or related-party involvement, says Lupin
Lupin clarified that the agreement does not involve any acquisition and does not fall under the category of a related-party transaction.
Lupin said the partnership is expected to enhance its reach and ensure wider availability of cost-effective biologics globally. “This collaboration with Zentiva aims to expand Lupin’s market reach and provide high-quality and cost-effective biosimilar to patients worldwide,” the company noted.
This move aligns with Lupin’s broader strategy to strengthen its biosimilar portfolio and tap into international opportunities in the high-growth biologics segment.
Share price of Lupin
The share price of Lupin is up nearly 1.12 per cent as of 11 am today, a day after the announcement. Nifty Pharma also opened in the green, despite Trump’s threat to impose a 200 per cent tariff on all pharmaceutical imports.