Actavis plans to enter biosimilars, opening talks with Poland's Bioton to buy stake in Biopartners

Iceland-based generic drugs group Actavis (OMX: ACT) revealed that it has plans to enter into the field of biosimilars, copy versions of biotechnology drugs. As part of this aim, the firm has entered into talks with Poland-based Bioton (WSE: BIO) to acquire 51% of the latter's holding in Switzerland's Biopartners.

Actavis had been granted exclusive rights to carry out due diligence with respect to making a offer for the Biopartners stake until November 1, 2010, said Bioton, noting that a purchase price, if an offer is to be made, will be agreed after the review is completed.

Claudio Albrecht, chief executive of Actavis commented: "By entering into biosimilars the generic companies gain access to a portfolio that requires a new approach to development and marketing. We will have generic companies investing significantly more in research and we will see originator companies developing generics. Only the large generic players such as Teva, Sandoz, Mylan and Actavis have the capability to do this, either by themselves or in partnerships with originators.â