BeiGene (BGNE) : global strategic oncology collaboration with Amgen (AMGN)

 

 

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BeiGene announces global strategic oncology collaboration with Amgen; Amgen to purchase approximately $2.7 bln of BeiGene shares

BeiGene and Amgen announced a global strategic oncology collaboration for the commercialization and development in China of Amgen's XGEVA (denosumab), KYPROLIS (carfilzomib), and BLINCYTO (blinatumomab) and the joint global development of 20 oncology assets in Amgen's pipeline, with BeiGene responsible for development and commercialization in China.

• Under the agreement, BeiGene will commercialize XGEVA, KYPROLIS and BLINCYTO in China for five or seven years, during which time the parties will equally share profits and losses. Following the commercialization period, BeiGene will have the right to retain one product and will be entitled to receive royalties on sales in China for an additional five years on the products not retained.
• Amgen and BeiGene will co-fund global development costs for the 20 Amgen oncology pipeline assets, with BeiGene contributing up to $1.25 bln worth of development services and cash over the term of the collaboration. Among various terms, BeiGene is entitled to receive royalties from global sales of each product outside of China, with the exception of AMG 510.

In connection with the collaboration, Amgen will purchase a 20.5% stake in BeiGene for approximately $2.7 bln in cash at $174.85 per ADS. This represents a 36% premium to BeiGene's 30-day volume-weighted average share price as of October 30.