Human Genome Sciences (HGS) will receive a $40 million payment from Novartis in September for the successful completion of a Phase IIb trial of Albuferon® in patients with chronic hepatitis C.
“This $40 million payment will bring the total milestone payments received from Novartis under our Albuferon co-development and commercialization agreement to $132.5 million,” points out H. Thomas Watkins, president and CEO, HGS. “Novartis and HGS are also sharing clinical development costs equally.”
Under an agreement entered into in June 2006, HGS and Novartis will co-commercialize Albuferon in the U.S. The companies will share clinical development and U.S. commercialization costs as well as U.S. profits equally.
Novartis will be responsible for commercialization in the rest of the world and will pay HGS a royalty on those sales. Clinical development, commercial milestones, and other payments to HGS could total as much as $507.5 million.