Strides invests in US-based biosimilar company

Strides Arcolab has invested in Oncobiologics Inc, a privately held US-based drug company focussed on biosimilar and novel biologic drug research, the companies said.

A news release didn’t disclose the financial terms. The investment is part of the company’s strategy to fund promising biopharma companies, Bangalore-based Strides said.

Biologic medicines use proteins manufactured in living cells, instead of chemical-based drugs. Biosimilars are copies of existing biological medicines.

Oncobiologics is working on a biosimilar of blockbuster drugs like Humira, a rheumatoid arthritis drug patented by Eli Lilly, as well as a copies of Avastin and Herceptin. Strides was attracted by Oncobiologics’ business model.

“After significant due diligence, it is evident that their success to date in meeting technical milestones is an indicator of the solid team and business model they have constructed,” said Arun Kumar, Strides’ chief executive.

Strides last year sold its injectables business, Agila Specialities, to US drug maker Mylan Inc for 1.8 billion. At the time, Kumar had said that he would invest in Indian generics market as well as research and development.

Strides shares closed on the Bombay Stock Exchange at Rs 651.05, up 1.5%, outpacing a 1.3% gain in the benchmark Sensex.