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|Amgen and Cytokinetics Announce Expansion of License for Omecamtiv Mecarbil|
Cytokinetics Will Receive $25 Million Plus Potential Milestone Payments and Royalties
THOUSAND OAKS, Calif. AND SOUTH SAN FRANCISCO, Calif, (June 12, 2013) - Amgen (NASDAQ:AMGN) and Cytokinetics Incorporated (NASDAQ:CYTK) today announced an expansion of their strategic collaboration to include Japan. In 2006, Cytokinetics and Amgen entered into a collaboration to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. Omecamtiv mecarbil is the most advanced drug candidate in this collaboration. Initially, Cytokinetics' license to Amgen for omecamtiv mecarbil excluded Japan. Under the amendment to the collaboration announced today, the companies have agreed on terms expanding Amgen's license for omecamtiv mecarbil and related compounds to include Japan.
In consideration of the expanded license, Cytokinetics will receive $25 million from Amgen comprised of a non-refundable license fee of $15 million and $10 million for Amgen's purchase of Cytokinetics' common stock. The companies have executed a stock purchase agreement providing for the sale of Cytokinetics' common stock to Amgen at a price per share equal to the 10-day trailing average of the closing price of Cytokinetics' stock on the last trading day prior to execution of the stock purchase agreement. In addition, Cytokinetics is eligible to receive additional pre-commercialization milestone payments for the development of omecamtiv mecarbil in Japan of up to $50 million as well as royalties on sales of omecamtiv mecarbil in Japan. Under the terms of the amended collaboration agreement, Cytokinetics plans to conduct a Phase I pharmacokinetic study, the costs of which will be reimbursed by Amgen, intended to support the inclusion of Japanese patients in a potential Phase III clinical development program for omecamtiv mecarbil.
"We are pleased to expand our collaboration with Amgen to include Japan," stated Robert I. Blum, Cytokinetics' President and Chief Executive Officer. "Our decision to amend the agreement at this time is based on our confidence in the progress of our collaborative development program for omecamtiv mecarbil and on Amgen's recent commitment to expand its business activities in Japan. We look forward to the integration of Japan into our collaboration's global development plan for this promising drug candidate."
"This expanded collaboration furthers Amgen's hopes to address the needs of patients with heart failure in Japan," said Sean E. Harper, M.D., Amgen's Executive Vice President of Research and Development.
About Omecamtiv Mecarbil
Forward-Looking Statements: Amgen
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Forward-Looking Statements: Cytokinetics