Sandoz expands commercialization pipeline to 39 assets through US$322M Henlius partnership
Under the milestone-based agreement, Sandoz could pay Henlius up to US$322 million, including near-term payments of up to US$100.5 million linked to the initial assets.
CHINA—Sandoz has entered a collaboration agreement with Shanghai Henlius Biotech to develop and commercialise up to 10 biosimilars, strengthening the Swiss company’s pipeline as major pharmaceutical products approach patent expiry.
Under the milestone-based agreement, Sandoz could pay Henlius up to US$322 million, including near-term payments of up to US$100.5 million linked to the initial assets.
The companies have already agreed on an initial group of biosimilars.
Expanding the biosimilar portfolio
Henlius will develop and manufacture the products, while Sandoz will hold commercialisation rights globally, excluding China.
The agreement builds on the companies’ existing relationship, which began in April 2025 with an oncology-focused collaboration.
The initial portfolio includes a biosimilar referencing Erbitux (cetuximab), the monoclonal antibody marketed by Eli Lilly and Merck KGaA for colorectal cancer and certain forms of squamous cell carcinoma.
Global sales of Erbitux increased 6.6% to US$1.7 billion in 2025.
Although key patents covering cetuximab have expired, the drug’s structural complexity has limited the development and marketing of biosimilar alternatives.
Sandoz and Henlius will also develop biosimilars referencing Repatha (evolocumab), Amgen’s cholesterol-lowering medicine, and Benlysta (belimumab), GSK’s treatment for systemic lupus erythematosus.
In addition, the companies are developing recombinant human hyaluronidase.
The enzyme can be used in the development of subcutaneous formulations to improve the dispersion and absorption of injected medicines, potentially supporting the delivery of future biosimilars.
Strengthening Sandoz’s pipeline
Richard Saynor, chief executive officer of Sandoz, said the expanded collaboration with Henlius reinforces the company’s commitment to improving access to medicines while positioning it to capture a larger share of the global biosimilar market.
Jefferies analysts described the agreement as one of the largest biosimilar partnering deals in Sandoz’s history.
They also expect the company to pursue additional licensing agreements to strengthen its pipeline as the industry prepares for a potential shortage of new assets.
Sandoz already has one of the industry’s broadest biosimilar portfolios.
Following the Henlius agreement, its pipeline comprises 39 assets, with the potential to increase to as many as 46.
Opportunity from patent expiries
The partnership comes as the pharmaceutical industry prepares for an extended period of patent expiries.
As blockbuster medicines lose market exclusivity, manufacturers face significant revenue gaps while biosimilar developers gain opportunities to introduce lower-cost alternatives.
A 2025 GlobalData report projected that medicines accounting for only 4% of global drug sales would remain under patent protection by 2030, down from 12% in 2022.
Sandoz said the Henlius agreement represents another step in its strategy to capture a significant share of the global biosimilar loss-of-exclusivity market over the next decade.
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