Biogen, Genentech Amend Deal On MS Drug
From Associated Press (October 21, 2010)
NEW YORK -- Biogen Idec Inc. and Genentech said Thursday they amended their development agreement on a potential multiple sclerosis treatment.
Genentech, a unit of Swiss drug developer Roche, will now have responsibility for the further development of ocrelizumab in multiple sclerosis and will fund all the costs going forward. Biogen will receive tiered, double-digit royalties on U.S. sales that will approximate its current 30 percent interest in the compound.
Ocrelizumab recently completed a midstage study with positive results.
The companies are already partners on the drug Rituxan and said the sale of ocrelizumab will not impact that current profit-sharing deal.
Also, Biogen will increase its share of the losses and profits related to the development and sales of GA101 in the US to 35 percent from 30 percent. GA101 is aimed at treating chronic lymphocytic leukemia and non-Hodgkin lymphoma. Once that drug reaches certain sales milestones, Biogen’s share of the profits of Rituxan will decrease to 35 percent from 40 percent.
Shares of Biogen, based in Cambridge, Mass., fell 1 cent to $58.30 in afterhours trading after shedding 35 cents to close at $58.31 during the regular trading session.
Posted: October 2010