Alvotech and CCHN partner on biosimilars in China

Privately-held Alvotech today announced it is entering into a joint venture with China’s Changchun High & New Technology (CCHN) Industries Group (000661.SZ), which will enable Iceland-based Alvotech to develop, manufacture and commercialize its biosimilar portfolio in China.

News if the deal sent the Chinese firm’s shares up as much as 3.4% in early trading, but they eased back to little change by close.

This collaboration aligns the interests and strengths of Alvotech and CCHN, where a new state-of-the-art biologics drugs manufacturing facility will be built in Changchun, China. Under the terms of the agreement, CCHN will fund the joint venture with $100 million while Alvotech will contribute additional capital and six drug market authorizations for its monoclonal antibodies, used in advanced therapy of cancer and autoimmune diseases, valued at $100 million. The construction of a jointly-owned facility is expected to start as early as in the first half of 2019.