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news.Biovitrum and Amgen have signed an agreement under which Biovitrum will acquire the marketed biologic therapeutic products Kepivance and Stemgen from Amgen, and will also obtain from Amgen a worldwide exclusive license to Kineret for its current approved indication. The agreement includes an inventory of the three products at an undisclosed value.
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The financial terms of the transaction include an upfront payment of approximately $130 million, consisting of $110 million in cash and ordinary shares of Biovitrum, representing a value of $20 million at the time of closing, subject to certain adjustments provided in the acquisition agreement.
In addition, the agreement provides for the payment of sales milestones and additional contingent payments under certain circumstances, including, without limitation, potential royalties in the event that Biovitrum develops modified forms of Kineret. Biovitrum will finance the cash portion of the transaction with debt and existing cash. The transaction is expected to close by the end of 2008.
Martin Nicklasson, CEO of Biovitrum, said: “The acquisition of these exciting biotechnology therapeutics is fully in line with our business strategy and roadmap for growth. We will now expand Biovitrum’s presence to include North America, Europe, Australia and New Zealand, which will enable us to serve patients with unmet medical needs in these regions.”