This announcement contains inside information
03 October 2016 07:00
AstraZeneca today announced that MedImmune, its global biologics research and
development arm, has entered into a licensing agreement with Allergan plc for
the global rights to MEDI2070. MEDI2070 is an IL-23 monoclonal antibody
currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease
(a chronic inflammatory disease of the intestines) and is ready for Phase II for
ulcerative colitis (a chronic inflammatory condition of the colon and rectum).
These diseases are outside AstraZeneca's three main therapy areas - Respiratory,
Cardiovascular & Metabolic Diseases, and Oncology. MedImmune will continue the
ongoing Phase II trials until a mutually-agreed transition date.
Under the terms of the agreement, Allergan will make an upfront payment to
AstraZeneca of $250 million for the exclusive, worldwide licence to develop and
commercialise MEDI2070. In addition, Allergan may make potential additional
payments to AstraZeneca of up to $1.27 billion, dependent on the achievement of
agreed upon success-based development and sales-related milestones, and pay
tiered royalties on potential sales of the medicine.
MedImmune has been leading the clinical development for MEDI2070 under a
collaboration agreement AstraZeneca entered into with Amgen Inc. (Amgen) in
March 2012. Under the conditions of this agreement, AstraZeneca will
subsequently pay Amgen one third of all payments and royalties received from
Allergan. Amgen will also receive a single-digit percentage inventor royalty on
Bahija Jallal, Executive Vice President, MedImmune, said: "This agreement
demonstrates our sharp focus on three main therapy areas while creating value
from the increased R&D productivity and innovative science in our pipeline
through collaborations. Allergan has significant experience in gastrointestinal
and inflammatory diseases and is the right partner to progress the development
and commercialisation of MEDI2070."
David Nicholson, Chief Research & Development Officer, Allergan, said: "MEDI2070
represents an exciting addition to our Open Science pipeline, adding an
important new programme currently being studied in Crohn's disease, with
potential across a number of inflammatory and autoimmune disorders. The MEDI2070
programme also reinforces Allergan's commitment to bringing forward important
innovations in the treatment of inflammation and autoimmune disorders where
significant unmet need exists across many of our therapeutic areas. We look
forward to bringing our significant clinical development and regulatory
expertise to bear and maximising the potential benefit of this possible new
treatment option for patients."
The transaction is expected to close in the fourth quarter of 2016, subject to
customary closing conditions, including the expiration or early termination of
the waiting period under the Hart Scott Rodino Act. AstraZeneca is expected to
retain around $167 million of the upfront payment and up to around $847 million
in future potential milestones, as well as the tiered royalty payments of up to
low double-digit percent, following payment to Amgen under the provisions of the
original agreement. As AstraZeneca will not retain a significant ongoing
interest in MEDI2070, any revenue will be reported as Other Operating Income in
the Company's financial statements. The agreement does not impact AstraZeneca's
financial guidance for 2016.
About Allergan plc
Allergan plc, headquartered in Dublin, Ireland, is a bold, global pharmaceutical
company and a leader in a new industry model - Growth Pharma. Allergan is
focused on developing, manufacturing and commercializing branded
pharmaceuticals, devices and biologic products for patients around the world.
Allergan markets a portfolio of leading brands and best-in-class products for
the central nervous system, eye care, medical aesthetics and dermatology,
gastroenterology, women's health, urology and anti-infective therapeutic
Allergan is an industry leader in Open Science, the Company's R&D model, which
defines our approach to identifying and developing game-changing ideas and
innovation for better patient care. This approach has led to Allergan building
one of the broadest development pipelines in the pharmaceutical industry with
65+ mid-to-late stage pipeline programs in development.
Our Company's success is powered by our more than 16,000 global colleagues'
commitment to being Bold for Life. Together, we build bridges, power ideas, act
fast and drive results for our customers and patients around the world by always
doing what is right.
With commercial operations in approximately 100 countries, Allergan is committed
to working with physicians, healthcare providers and patients to deliver
innovative and meaningful treatments that help people around the world live
longer, healthier lives every day.
For more information, visit Allergan's website at www.Allergan.com.
MedImmune is the global biologics research and development arm of AstraZeneca, a
global, innovation-driven biopharmaceutical business that focuses on the
discovery, development and commercialization of small molecule and biologic
prescription medicines. MedImmune is pioneering innovative research and
exploring novel pathways across Respiratory & Autoimmunity, Cardiovascular &
Metabolic Diseases, Oncology, and Infection and Vaccines. The MedImmune
headquarters is located in Gaithersburg, Md., one of AstraZeneca's three global
R&D centres, with additional sites in Cambridge, UK and Mountain View, CA. For
more information, please visit www.medimmune.com.
AstraZeneca is a global, science-led biopharmaceutical company that focuses on
the discovery, development and commercialisation of prescription medicines,
primarily for the treatment of diseases in three therapy areas - Respiratory,
Cardiovascular & Metabolic Diseases, and Oncology. The Company is also
selectively active in Neuroscience and Autoimmunity. AstraZeneca operates in
over 100 countries and its innovative medicines are used by millions of patients
worldwide. For more information please visit: www.astrazeneca.com
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