Amgen sells off two biotech products
pharmafile | September 16, 2008 | News story | Research and Development |Â Â biotechÂ
Biotech pioneer Amgen has sold off two niche products to Biovitrum, along with the promotional rights to a third product, in a deal it says will give it more time to focus on its pipeline.
The Swedish specialist pharma firm will acquire Kepivance and Stemgen from Amgen and also the exclusive global license to market Kineret. Amgen says the three biotech drugs generated combined sales of nearly $70 million in 2007.
Amgen chief executive Kevin Sharer added: "This deal will allow Amgen to focus its resources on developing new, innovative therapies for serious illnesses, and on expanding its core products to benefit more patients in markets around the world."
Kineret is a recombinant of a naturally occurring protein that regulates interleukin-1 (IL-1) – another protein that is found in excess in rheumatoid arthritis patients.
Kepivance treats severe oral mucositis, a condition in which cells lining the mouth are damaged by cancer treatments such as chemotherapy and become painful sores.
And Stemgen is indicated for use in combination with Neupogen, a cancer treatment from Amgen.
Martin Nicklasson, chief executive of Biovitrum, said the deal was validation of its strong relationship with Amgen, and that soon it is to expand its presence in North America, Europe, Australia and New Zealand.
He added: "The acquisition of these exciting biotechnology therapeutics is fully in line with our business strategy and roadmap for growth. Moreover, the new products will add valuable momentum to our top line performance as well as additional cash flow."
Biovitrum will pay $130 million upfront, consisting of $110 million cash and $20 million worth of company shares. The agreement also provides for the payment of sales milestones, and the transaction is expected to close by the end of 2008.
Related Content
Arkin Capital closes $100m fund for pre-clinical and early clinical-stage biotech
Arkin Capital has announced the closing of Arkin Bio Ventures III, a $100m fund designed …
Cellbyte raises $2.75m to fund pharma drug launch platform
Cellbyte has announced that it has raised $2.75m in seed funding for the streamlining of …
Lilly opens fourth US Gateway Labs site
Eli Lilly has opened its newest Lilly Gateway Labs (LGL) site in San Diego, California, …
