Amgen and Takeda Pharmaceutical Company Limited announced an agreement under which Takeda will develop and commercialize for the Japanese market up to 13 molecules from Amgen's pipeline, one of which is included as an option. This collaboration validates the significant value of Amgen's clinical stage pipeline and further ensures Japanese patients will have access to Amgen's innovative potential medicines for serious illnesses. The collaboration includes early to mid-stage clinical-stage candidates across a range of therapeutic areas, including oncology, inflammation, and pain.
The financial terms include an upfront cash payment to Amgen of $200 million. Takeda will also pay to Amgen up to $340 million in expected worldwide development costs for these molecules over the next several years, $362 million in success-based milestone payments, and double digit royalties on sales in Japan. Additionally, Takeda plans to acquire all the shares of Amgen's Japanese subsidiary, Amgen KK. We anticipate the share transaction to close in the first quarter.
In addition, Takeda will become Amgen's worldwide partner for motesanib diphosphate (AMG 706), and will pay Amgen $100 million upfront, $175 million in success-based milestones for the first two indications, and double digit royalties on sales in Japan. Takeda will also pay 60 percent of ongoing clinical development expenses outside Japan and share potential profits outside Japan 50/50.
"We are excited about the agreements with Amgen, and also to welcome Amgen KK into Takeda Group," said Takeda president Yasuchika Hasegawa. "The target indications of the molecules we licensed from Amgen, such as cancer and bone/joint diseases, are in our core therapeutic areas. We believe they will enhance our R&D pipeline and we are looking forward to offering novel treatment options to the patients with such diseases and to physicians as early as possible, through conducting development activities in close collaboration with Amgen".
"The development programmes included in this collaboration represent the growth engine for Amgen in the next decade," said Amgen Chairman and CEO Kevin Sharer. "Takeda's confidence in these programs validates their potential to become innovative therapies for patients in Japan and worldwide. We value and respect Takeda's strong development and marketing capabilities and look forward to working with the leading pharmaceutical company in Japan."
The partnership includes Amgen's Vectibix (panitumumab), motesanib diphosphate and additional molecules in oncology, inflammation and neurology/pain. With the exception of oncology candidate motesanib diphosphate, all molecules included in the partnership are biologics. Amgen retains certain co-promotion rights in Japan on all programs.
Financial guidance previously provided on January 24, 2008 by Amgen for 2008 adjusted earnings per share will remain unchanged by this transaction.
Amgen discovers, develops and delivers innovative human therapeutics.
A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient.
Located in Osaka, Japan, Takeda is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders in the industry, Takeda is committed to striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products.