Summary
Amgen Inc. (AMGN) has announced a significant collaboration agreement with Daiichi Sankyo Company, Limited, entered into on July 11, 2007. This agreement grants Daiichi Sankyo exclusive rights to develop and commercialize Amgen's proprietary product, denosumab, within Japan for post-menopausal osteoporosis and oncology, with potential for additional indications. This strategic move allows Amgen to leverage Daiichi Sankyo's expertise in the Japanese market while sharing development and commercialization responsibilities. The financial implications of this deal include an upfront payment of $20 million from Daiichi Sankyo to Amgen, along with Daiichi Sankyo assuming all denosumab development costs within Japan. Furthermore, Daiichi Sankyo will contribute approximately $150 million towards worldwide development costs for denosumab through 2009. Amgen will also receive tiered royalties based on net sales of denosumab in Japan by Daiichi Sankyo. This collaboration not only provides immediate financial benefit but also supports the global development of denosumab, a key pipeline asset for Amgen.
Key Highlights
- 1Amgen entered into a material definitive agreement with Daiichi Sankyo Company, Limited on July 11, 2007.
- 2The agreement grants Daiichi Sankyo exclusive rights to develop and commercialize Amgen's denosumab in Japan for osteoporosis and oncology.
- 3Amgen received an upfront payment of $20 million from Daiichi Sankyo.
- 4Daiichi Sankyo will assume all denosumab development costs in Japan and contribute approximately $150 million to worldwide development costs through 2009.
- 5Amgen is eligible to receive tiered royalties based on Japanese net sales of denosumab.
- 6Daiichi Sankyo also grants Amgen worldwide rights to certain intellectual property related to denosumab, subject to a retained right in Japan.
- 7The collaboration agreement is set to expire in 2027, unless terminated earlier.