Humira biosimilar rights returned to Momenta by Baxalta's new owner

Ireland-headquartered rare disease drug specialist Shire (LSE: SHP) has exercised its right to terminate its collaboration agreement with US biotech firm Momenta Pharmaceuticals (Nasdaq: MNTA) to develop and commercialize M923, a proposed biosimilar of Humira (adalimumab), based on a comprehensive portfolio assessment following the $32 billion acquisition of Baxalta.

Under the terms of the 2011 collaboration agreement, the accord will terminate 12 months following the notice and Shire will continue to be obligated to fund the M923 program until termination. Shire will begin to work to transfer all ongoing clinical, regulatory and commercialization activities to Momenta.

“Baxalta has been a strong collaborative partner and we thank them for their efforts in advancing this important program through late-stage clinical development,” said Craig Wheeler, president and chief executive of Momenta. “We view Shire’s decision as a significant opportunity for us to capture additional value from this program for the company and its shareholders. We remain very excited about the potential for our biosimilar Humira candidate and look forward to reporting top-line results of the current Phase III trial of M923 in late 2016,” he added.