Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Bristol-Myers Squibb has signed an agreement with Otsuka Pharmaceutical, a Japanese manufacturer and distributor of pharmaceuticals, to extend the US portion of the companies' long-standing agreement for the development and commercialization of Abilify from the currently scheduled end date of November 2012 until the expected loss of exclusivity in April 2015.
Subscribe to our email newsletter
In addition, the companies have established oncology collaboration for two Bristol-Myers Squibb products – Sprycel (dasatinib) and Ixempra (ixabepilone).
Under terms of the agreement Bristol-Myers Squibb will pay Otsuka an up-front cash payment of $400 million. Beginning on January 1, 2010, the share of Abilify US net sales Bristol-Myers Squibb will receive will change from 65% to: 58% for 2010, 53.5% for 2011 and 51.5% for 2012. During this period Otsuka will be responsible for 30% of expenses related to the commercialization of Abilify compared to having no responsibility under the existing collaboration agreement.
Beginning January 1, 2013, and through the expected loss of US exclusivity in 2015, Bristol-Myers Squibb will receive 50% of net sales up to $2.7 billion and a declining tiered share of net sales above $2.7 billion. Otsuka will be responsible for 50% of commercialization expenses during this period.
Beginning in 2010, Bristol-Myers Squibb and Otsuka will collaborate on Sprycel and Ixempra as follows: Otsuka will share in commercial expenses for the US, Europe and Japan and co-promote Sprycel with Bristol-Myers Squibb in the US, Japan and major EU markets; Bristol-Myers Squibb will pay Otsuka a collaboration fee on aggregate annual net sales of Sprycel and Ixempra beginning in 2010 on a regressive tiering basis through 2020.
Lamberto Andreotti, president and COO of Bristol-Myers Squibb, said: “The agreement with our long-standing and valued collaborator Otsuka will help build our earnings base for 2013 and transition us to an expected period of growth in 2014 and beyond. Further, our balance sheet remains strong, which allows us to pursue business development opportunities as part of our String of Pearls strategy.”