Amgen Commences Strategic Collaboration With BeiGene to Expand Oncology Presence in China
"There continues to be substantial unmet medical need in
As previously announced, the terms of the collaboration are:
Amgenhas acquired a 20.5% stake in BeiGenefor approximately $2.8 billionin cash. This represents a purchase price of $174.85per BeiGene American Depositary Share on NASDAQ, a 36% premium to BeiGene's30-day volume-weighted average share price as of Oct. 30, 2019, the day prior to the signing of the agreements. In addition, Anthony C. Hooper, former executive vice president of Global Commercial Operations at Amgen, has been elected to BeiGene'sboard of directors, effective today. BeiGenewill commercialize XGEVA® (denosumab), KYPROLIS® (carfilzomib) and BLINCYTO® (blinatumomab) in China, during which time the parties will equally share profits and losses. Two of these products will revert to Amgen, one after five years and one after seven years. Following the commercialization period, BeiGenewill have the right to retain one product and will be entitled to receive royalties on sales in Chinafor an additional five years on the products returned to Amgen. XGEVA was launched in Chinain September 2019; New Drug Applications for KYPROLIS and BLINCYTO have been filed in China. Amgenand BeiGenewill collaborate to advance 20 medicines from Amgen'sinnovative oncology pipeline in Chinaand globally. BeiGenewill share global research and development costs and contribute up to $1.25 billionto advance these medicines. Amgenwill pay royalties to BeiGeneon the sales of these products outside of China, with the exception of AMG 510, Amgen'sfirst-in-class KRASG12C inhibitor that is being studied as a potential treatment for solid tumors. Amgenanticipates utilizing data from clinical trials conducted in Chinato advance the development of its oncology portfolio globally.
- Of the 20 oncology medicines in development,
BeiGenewill assume commercial rights in Chinafor seven years after launch for those that receive approval in China, including AMG 510. After this time, BeiGenewill retain rights to up to six of these products in China, excluding AMG 510, while rights on remaining products revert to Amgen. Amgenand BeiGenewill share profits in Chinaequally on these products until the rights revert to Amgen, after which Amgenwill pay royalties to BeiGeneon sales in Chinafor a period of five years after reversion. Amgenwill continue to commercialize its non-oncology product portfolio in China. Last year, Amgenlaunched its first-ever product in China, Repatha® (evolocumab), an LDL cholesterol-lowering treatment proven to reduce the risk of heart attacks and stroke. Amgenexpects to launch a number of other non-oncology medicines in Chinaover the next several years, including Prolia® (denosumab), which reduces the risk of fracture in postmenopausal women with osteoporosis.
- XGEVA, KYPROLIS and BLINCYTO, as well as the medicines in
Amgen'soncology pipeline, will be manufactured at Amgen'sexisting facilities.
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