8-KOther Events

BIOGEN INC. 8-K Report, Corporate Update (Nov 29, 2011)

Filed November 29, 2011For Securities:BIIB

Summary

Biogen Idec Inc. has announced a significant development regarding its collaboration with Portola Pharmaceuticals, Inc. The company has received the necessary antitrust clearance under the Hart-Scott-Rodino Act, making the agreement effective. This collaboration focuses on the development and commercialization of novel oral Syk inhibitors, which are potential treatments for various autoimmune and inflammatory diseases. The deal involves an upfront payment of $36 million in cash and a $9 million equity purchase in Portola by Biogen Idec, with further potential milestone payments reaching up to $508.5 million.

Key Highlights

  • 1Biogen Idec received U.S. government antitrust clearance (Hart-Scott-Rodino Act) for its collaboration with Portola Pharmaceuticals.
  • 2The collaboration is now effective, allowing Biogen Idec to proceed with development and commercialization of novel oral Syk inhibitors.
  • 3Biogen Idec will make an upfront payment of $36 million in cash and purchase $9 million of Portola equity.
  • 4Potential future milestone payments to Portola Pharmaceuticals could reach up to $508.5 million.
  • 5Biogen Idec will lead global development and commercialization for major indications (e.g., rheumatoid arthritis, lupus).
  • 6Portola Pharmaceuticals will lead worldwide development and U.S. commercialization for select smaller indications and discovery efforts.
  • 7Biogen Idec and Portola will share worldwide costs and profits 75% and 25%, respectively.

Frequently Asked Questions

The collaboration aims to develop and commercialize novel oral Syk inhibitors, which are intended to treat various autoimmune and inflammatory diseases.

Biogen Idec will pay Portola Pharmaceuticals $36 million in cash and purchase $9 million of Portola's equity before the end of 2011.

Portola Pharmaceuticals could receive additional payments of up to $508.5 million based on the achievement of certain development and regulatory milestones.

Biogen Idec will lead global development and commercialization for major indications. Portola Pharmaceuticals will lead worldwide development and U.S. commercialization for select smaller indications, as well as discovery efforts for follow-on Syk inhibitors. Portola also retains an option to co-promote alongside Biogen Idec in the U.S. for major indications.