The agreement covers treatments for oral mucositis, PBPC transplantation, and RA, which together made $70 million in 2007.
Biovitrum is paying Amgen $150 million upfront for three approved biopharmaceuticals. The deal covers the acquisition of Kepivance® for cancer-related oral mucositis and Stemgen®, given during peripheral blood progenitor cells (PBPC) transplantation. The agreement also includes the worldwide, exclusive license to Kineret® as a rheumatoid arthritis drug. Together, these three drugs generated sales of nearly $70 million in 2007.
The initial payment includes $110 million in cash and the rest in ordinary shares of Biovitrum. The transaction also calls for sales-based milestones. Amgen will receive additional fees depending on certain factors including potential royalties if Biovitrum develops modified forms of Kineret. The transaction is expected to close by the end of 2008.
Kineret is a recombinant form of a naturally occurring protein that regulates interleukin-1, which occurs in excess in patients with rheumatoid arthritis. By blocking IL-1, the treatment inhibits the inflammatory response in rheumatoid arthritis.
Kepivance is also a recombinant form of human keratinocyte growth factor. It reduces the incidence and duration of severe oral mucositis by protecting existing cells that line the mouth and throat from the damage caused by chemotherapy and radiation and by stimulating the growth and development of new cells.
Stemgen is indicated for use in combination with Neupogen, which is also an Amgen drug, to enhance autologous PBPC transplantation for patients at risk of poor PBPC mobilization to increase the number of PBPC collected.
