Race for Gland Pharma

Gland Pharma, a Hyderabad based company which some years back had started its biosimilar portfolio development in terms of small proteins and mAb initial developments is up for sale. Though the company started developing R&D in terms of small protein development but due to financial constraints had to stop biosimilar process development in between.

The recent news is both Baxter, Torrent Pharma (India) and Fosun Pharma (China) have proposed for its acquisition. The interesting part is both Torrent and Fosun are focusing on biosimilar development, Torrent recently launched its Adalimumab Biosimilar under the name of "Adfrar' and Fosun is developing Herceptin Biosimilar which it is planning to launch in 2018. Who ever acquires gland pharma whether its Torrent or Fosun will already have process in place for small molecule Biosimilar development.

Both Torrent and Fosun have sufficient cash in place, but we need to see if any one of them will be able to close the deal.

Oncobiologics

I admire OncoBiologics, though the company is a very late entrant in the biosimilar race but they developed a good portfolio in a span of just 4 years.

At present they are looking for a IPO where in the price ranges will be for USD 11- 13, which is to be listed in NASDAQ by the symbol ONS and i am sure that once their biosimilar products are launched all across globe their share may give around 3-4 times profit in next 6-7 years. I shall hold this company as a long term investor. 

Their most advanced candidates are ONS - 3010, which is a Humira Biosimilar and ONS- 1045 which is Avastin Biosimilar , these products yet to see Phase III. The company at one hand is promoting itself as a cost effective biosimilar  producer company and at the other hand its promoting its state of the art manufacturing process "Biosymphony model".

Why IPO at this point??????

The company was planning to start the PIII trial for ONS 3010 and ONS 1045 in last quarter of 2015 but due to huge cash burn in 2015 at the rate of -292.9%,they went ahead with the IPO so that they can probably go ahead and start their PIII trials latest by Q2 or Q3 2016, and perhaps this year they would start with other products PI trial (I can pull up the information, if required), Thus this IPO will define their path going forward 

The company already have investors and collaborators funding them in different stages for their Biosymphony model  and advising them with regulatory aspects of launching their products in the regulated marker and already partnerships placed all across the globe for their Biosimilar products manufacturing, marketing and sales.

In future i shall not be surprised that this company will be acquisition target for companies like TEVA ....