Japan-based Fuji Pharma has acquired a 4.2% share in Iceland-based biopharmaceutical firm Alvotech, it was reported yesterday.

The deal is valued at USD50m.

The two firms have signed a contract for development and commercialisation of biosimilars in Japan.

Fuji´s Alvotech investment is claimed to further strengthen the collaboration between the companies and indicates long-term commitment from both companies. Key shareholders in Alvotech following the transaction are Aztiq Pharma AB, which is the controlling shareholder led by Robert Wessman, generic pharmaceutical company Alvogen, and Fuji Pharma.

Alvotech's current pipeline consists of six biosimilar monoclonal antibodies aimed at treating cancer, autoimmune, inflammatory and other diseases, with first products expected to be brought to market by 2020.