Biovitrum’s payment to Amgen is $117 million of which $13 million was paid at signing on September 12, 2008. The remaining $104 million has been paid in cash, and $20 million in new equity issued to Amgen. In addition, after Kineret and Kepivance have reached certain cumulative net sales Biovitrum will pay one-time milestones to Amgen.
The agreement includes Biovitrum’s acquisition of an inventory of the three products. Biovitrum will also assume responsibility for several ongoing Kepivance clinical studies, the costs of which Biovitrum will absorb within its current R&D budget.
Biovitrum also has the right to develop a modified anakinra product for use in orphan indications as well as gout and pseudo gout. If Biovitrum develops and commercializes a modified version of anakinra, Amgen will receive single digit percentage royalties.
Martin Nicklasson, CEO of Biovitrum, said: By closing this exciting deal with Amgen, our long time partner, we have made a transformative move for Biovitrum. Our new products will add substantial value to our top line, and give rise to earnings contribution, as well as lead to additional cash flow. In addition to three new products, we now have the necessary infrastructure in place to fully leverage the value of these biotechnology therapeutics.