- Amgen Dropped Out of Collaboration in May, Citing Suicide Risk
- Valeant Agrees to Pay $100 Million Upfront for Brodalumab
AstraZeneca Plc said Valeant Pharmaceuticals International Inc. agreed to buy the commercial rights to brodalumab, picking up the collaboration on the psoriasis treatment after Amgen Inc. dropped out in May.
Valeant agreed to pay $100 million upfront for the drug, as well as another $170 million in milestones before the product’s launch, AstraZeneca said in a statement. Valeant will also shoulder all development costs associated with regulatory approval and pay sales-related milestones worth as much as $175 million.
Amgen ended its collaboration with AstraZeneca for the monoclonal antibody three months ago, saying the drug risked going on sale with warning labels of suicide risk, limiting its potential audience.
Valeant will hold the exclusive rights to develop and commercialize brodalumab everywhere except in Japan and certain other Asian countries, according to the company statement. The drug will be submitted to regulators in the fourth quarter to treat moderate-to-severe psoriasis. After approval, AstraZeneca and Valeant will share profits.
AstraZeneca shares fell 2.3 percent to 4,027 pence at 8:31 a.m. in London amid a decline in European stocks. Analysts estimated last year that annual sales of brodalumab could reach as much as $1.5 billion at their peak. The drug treats the skin disease and related forms of arthritis. AstraZeneca began its collaboration with Amgen three years ago, with plans to develop five medications.
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