Merck & Co links with Korea's Hanwha on biosimilar of Enbrel

US drugs giant Merck & Co (NYSE:MRK) and South Korean drugmaker Hanwha Chemical Corp (KOSPI: 09830) have entered into an exclusive global agreement to develop and commercialize a candidate biosimilar form of Amgen/Pfizer/Takeda's blockbuster rheumatoid arthritis drug Enbrel (etanercept).

The drug generated first-quarter 2011 sales of $870 million for Pfizer (NYSE: PFE), which has rights to the drug outside the USA, excluding Japan where these are held by Takeda. Amgen (Nasdaq: AMGN) markets the drug in the USA, where Enbrel made sales of $3.3 billion last year, but its US patent is scheduled to lapse in October 2012. The drug is also used for the treatment of plaque psoriasis and ankylosing spondylitis and global turnover by all marketers reached $7.2 billion in 2010.

Under the terms of the accord, Hanwha and Merck will work together to develop and commercialize HD203, a candidate biosimilar form of etanercept developed by Hanwha. Merck will conduct clinical development and be responsible for manufacturing. In addition, upon marketing approval, Merck will commercialize HD203 globally, except for in Korea and Turkey where Hanwha has retained marketing rights.