8-KMaterial AgreementsExhibits & Filings

AMGEN INC 8-K Report, Material Agreement (Jul 16, 2007)

Filed July 16, 2007For Securities:AMGN

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.

Frequently Asked Questions

The primary purpose is to grant Daiichi Sankyo exclusive rights to develop and commercialize Amgen's product, denosumab, in Japan for the indications of post-menopausal osteoporosis and oncology, with potential for expansion into other areas. This partnership aims to leverage Daiichi Sankyo's market presence in Japan for denosumab's success.

Amgen received an upfront payment of $20 million from Daiichi Sankyo. Additionally, Daiichi Sankyo will cover denosumab development costs in Japan and contribute a significant portion, approximately $150 million, towards global development expenses through 2009.

Amgen will receive tiered royalties from Daiichi Sankyo, which will escalate based on increasing levels of annual net sales of denosumab in Japan. This provides Amgen with a revenue stream tied directly to the commercial success of the product in that territory.

Daiichi Sankyo gains exclusive rights to develop and commercialize denosumab in Japan, a significant market. They also receive worldwide rights to certain Amgen intellectual property related to denosumab, although Amgen retains an exclusive right in Japan within the scope of the collaboration. Daiichi Sankyo is also eligible for milestone payments based on EU or Japan approval for denosumab.