Henlius, Sandoz strike $322 million deal for up to 10 biosimilars

Sandoz and Shanghai Henlius Biotech agreed to collaborate on up to 10 biosimilar assets in a deal worth as much as $322 million, one of the largest such partnerships in the Swiss drugmaker's history.

Sandoz is expanding its biosimilar pipeline to as many as 46 assets through a $322 million collaboration with Shanghai Henlius Biotech, moving to capture a larger share of coming biologic patent expiries.

"Expanding access to life-enhancing medicines for patients around the world lies at the heart of everything we do," Richard Saynor, chief executive officer at Sandoz, said. "By strengthening our collaboration with Henlius through this strategic agreement, one of our largest ever in biosimilars, we are taking another step towards capturing a significant share of the unprecedented biosimilar market opportunity that lies ahead."

Under the agreement, Henlius will lead development and manufacturing while granting Sandoz exclusive commercialization rights outside Chinese Mainland and most Greater China regions. The initial bundle covers a proposed cetuximab biosimilar in clinical development, an evolocumab biosimilar and a belimumab biosimilar in technical and early development, plus an option on recombinant human hyaluronidase for subcutaneous delivery. The deal includes up to $77 million in upfront payments, as much as $160 million in development milestones and up to $77 million in sales milestones, plus 40 percent of net sales or net profits in the cooperation territory. Henlius expects total invoiceable amounts of up to $100.5 million in 2026, roughly HK$784 million.

The collaboration builds on an April 2025 agreement covering oncology therapy ipilimumab and expands Sandoz's biosimilar portfolio to 39 assets, with potential to reach 46. Sandoz, which recorded $11.1 billion in net sales in 2025, already markets 13 biosimilar molecules in nearly 100 countries. The deal targets therapies for colorectal and head-and-neck cancers, cardiovascular risk reduction and systemic lupus erythematosus, disease areas where biologic costs remain a barrier to access.

Biosimilar Wave Opens a $100 Million Revenue Stream

Biosimilars are near-identical copies of biologic medicines whose patents have expired, offering cheaper alternatives to originator drugs. Henlius, a Shanghai-based biopharmaceutical company, develops monoclonal antibody and antibody-drug conjugate biosimilars, with the deal making it a key upstream supplier to Sandoz while retaining rights in Chinese Mainland and most Greater China regions.

The reference medicines carry significant market weight. Erbitux (cetuximab), an epidermal growth factor receptor-targeted therapy, treats metastatic colorectal cancer and squamous cell carcinoma of the head and neck. Colorectal cancer is the third most commonly diagnosed cancer and the second leading cause of cancer death worldwide, with close to one million new head-and-neck cancer cases reported annually. Evolocumab, sold as Repatha, treats hypercholesterolaemia and reduces major cardiovascular event risk, while belimumab, sold as Benlysta, treats active systemic lupus erythematosus and lupus nephritis.

The deal deepens Sandoz's position against rivals in the biosimilar market, where competition includes Samsung Bioepis, with which Sandoz has a separate agreement for up to five assets including vedolizumab. The Swiss company's pipeline expansion comes as a wave of biologic patent expiries over the next decade opens an unprecedented loss-of-exclusivity market.

For investors, Henlius shares carry a Buy rating with a HK$99.78 price target on TipRanks, with the company's market capitalization at HK$36.69 billion. The deal provides near-term revenue visibility through the $100.5 million in expected 2026 invoiceable amounts. Sandoz, trading with a Buy rating and CHF81 price target, has gained 27.75 percent year to date, with a market cap of CHF32.12 billion.

This article is for informational purposes only and does not constitute investment advice.