Baxter International and Coherus Biosciences, a San Francisco Bay area-based clinical stage, pure-play biosimilar company, have entered into an exclusive collaboration to develop and commercialize a biosimilar to etanercept for Europe, Canada and Brazil. Biosimilars are intended to be used in place of existing, branded biologics to treat a range of chronic and often life-threatening diseases and have the potential to reduce costs and expand patient access.

Baxter will make an upfront payment of $30 million. Coherus will conduct development and Baxter will pay up to $216 million contingent on achievement of development and regulatory events. The agreement also allows for development and commercialization of an alternative biosimilar to etanercept, pending the outcome of clinical data.

"The collaboration allows us to partner with a company that brings demonstrated capabilities with potential to support accelerated entry into the biosimilar market for Baxter. This collaboration and Baxter's ongoing relationship with Momenta expand Baxter's pipeline, which now includes several biosimilars in the areas of immunology and oncology," said Ludwig Hantson, Ph.D., president of Baxter's BioScience business. "We're looking forward to entering the market with biosimilar treatments that will broaden patient access to care."