Kamada, Alvotech enter commercialization partnership for six biosimilar products
Kamada announced that it has entered into an agreement with Alvotech to commercialize Alvotech's portfolio of six biosimilar product candidates in Israel, upon receipt of regulatory approval from the Israeli Ministry of Health. Kamada leverages its expertise and presence in the Israeli market to distribute, in Israel, more than 20 products that are manufactured by third parties. Alvotech's pipeline includes biosimilar product candidates aimed at treating autoimmunity, oncology and, inflammatory conditions. Subject to approval by the IMOH, Kamada expects to launch the first of these products, PF708, in Israel during 2022. PF708 is a biosimilar candidate to teriparatide, an FDA approved product marketed under the brand name Forteo/Forsteo for the treatment of osteoporosis in patients with a high risk of fracture. PF708 recently received U.S. Food and Drug Administration approval and is known by the brand name, Bonsity. Following receipt of FDA marketing approval by Alvotech, the remaining five products included in the agreement are, subject to approval by the IMOH, expected to be launched in Israel during the years 2023-2025. Alvotech will maintain development, manufacturing and supply responsibilities for all products. The current Israeli market for the approved reference products to which Alvotech's six biosimilar products are targeted is estimated to be in the range of $125M to $150M annually. Based on the projected list price reduction due to increased competition as a result of the launch of these six biosimilar products, and anticipated market penetration potential, Kamada estimates the potential collective peak sales, achievable within several years of launch, generated by the distribution of all six biosimilar products to be in the range of $20M to $30M annually. Kamada's Distribution Products segment generated full-year 2018 revenues of $23.7M and $22.6M for the first nine months of 2019.