Baxter and Momenta to collaborate on biosimilar development

Baxter and Momenta Pharmaceuticals are entering into a new alliance in the field of follow-on biologic products, also known as biosimilars.

The new arrangement will see Baxter pay Momenta an upfront fee of $33 million (21.04 million pounds) to help fund the development of up to six biosimilar compounds, with further payments contingent on their developmental progress.

Baxter will be combining its expertise in global clinical development, biologic manufacturing and sterile injectables with Momenta's knowledge of high-resolution analytics, characterisation and product and process development.

The transaction will close in the first quarter of 2012 and will help both companies to capitalise on the growth of the biosimilar sector.

Ludwig Hantson, president of Baxter's bioscience business, said: "As biologics have become an increasingly important part of patient care, the collaboration with Momenta allows us to tap both companies' expertise to expand access to these important therapies."

Earlier this month, Baxter announced that it will be expanding its business through the acquisition of soft tissue repair specialist Synovis.