Merck & Co extends biotech reach with acquisition of UK's Avecia

In a move aimed at further expanding its footprint in the biotechnology sector, US drug giant Merck & Co says it has entered into a definitive agreement to acquire the biologics business of the Avecia Biologics group through affiliate Merck Sharp & Dohme. Avecia is a contract manufacturing organization with specific expertise in microbial-derived biologics. Financial details of the transaction were not disclosed but, according to a report by News Canada, Merck spokesman Ian McConnell said the value is well below $1 billion.

Confirming its interests in so-called 'biosimilars,' or copies of biological drugs - which still have no approval pathway in the USA but do in Europe, last year Merck set up a division ' Merck BioVentures - to make generic versions of off-patent, biotechnology-derived drugs. In February this year, Merck said it was buying a manufacturing facility and a group of potential generic biotech drugs, for preventing infections in cancer patients, from Insmed for $130 million.

Additionally, Merck acquired Schering-Plough's biotechnology operations along with its $41.1 billion buy of the latter, after the close of which chief executive Richard Clark said the company plans to make deals with biotech companies with first or best-in-class products, and has about $8 billion to spend.