Amgen entered into a strategic collaboration with Beigene under which Amgen will acquire a 20.5% stake in BeiGene for approximately $2.7 billion in cash. The terms of the agreement include the following:
BeiGene will commercialize Xgeva (denosumab), Kyprolis (carfilzomib) and Blincyto (blinatumomab) in China during which time the parties will equally share profits and losses. Two of these products will revert to Amgen, one after five years and one after seven years. Following the commercialization period, BeiGene will have the right to retain one product and will be entitled to receive royalties on sales in China for an additional five years on the products not retained. Xgeva was launched in China in September of this year; Kyprolis and Blincyto are both in Phase 3 trials in China.
Amgen and BeiGene will collaborate to advance 20 medicines from Amgen’s innovative oncology pipeline in China and globally. BeiGene will share global research and development costs and contribute up to $1.25 billion to advance these medicines. Amgen will pay royalties to BeiGene on the sales of these products outside of China, with the exception of AMG 510, Amgen’s first-in-class KRASG12C inhibitor that is being studied as a potential treatment for solid tumors.
Of the 20 oncology medicines in development, BeiGene will assume commercial rights in China for seven years after launch for those that receive approval in China, including AMG 510. After this time, BeiGene will retain rights to up to six of these products in China, excluding AMG 510, while rights on remaining products revert to Amgen. Amgen and BeiGene will share profits in China equally on these products until the rights revert to Amgen, after which Amgen will pay royalties to BeiGene on sales in China for a period of five years after reversion.
Amgen will continue to commercialize its non-oncology product portfolio in China.
Xgeva, Kyprolis, and Blincyto, as well as the medicines in Amgen’s oncology pipeline, will be manufactured at Amgen’s existing facilities.
The transaction is expected to close in early 2020 subject to BeiGene shareholder approval, the expiration or termination of waiting periods under all applicable antitrust laws, and satisfaction of other customary closing conditions.