Amgen Acquires Equity Stake in BeiGene for $2.8 Bn; Forms Strategic Pact in China
Amgen has acquired an equity stake in BeiGene, a Beijing-based pharma company, for $2.8 billion and formed a strategic oncology-drug pact with BeiGene in China and globally. The companies had announced the deal last year (November 2019).
BeiGene is a commercial-stage research-based oncology company with a team in China, including an approximately 900-person commercial organization and an approximately 600-person clinical development organization.
With the closing of the deal, Amgen has acquired a 20.5% stake in BeiGene for approximately $2.8 billion in cash. Under the deal, BeiGene will commercialize several Amgen drugs in China during which time the parties will equally share profits and losses. These drugs are: Xgeva (denosumab) for treating giant cell tumors of the bone; Kyprolis (carfilzomib) for treating multiple myeloma; and Blincyto (blinatumomab) for treating relapsed or refractory acute lymphoblastic leukemia. 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 returned to Amgen. Xgeva was launched in China in September 2019; new drug applications for Kyprolis and Blincyto have been filed in China.
In addition, 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 Amgen’s AMG 510, a KRAS (G12C) inhibitor being studied as a potential treatment for solid tumors. Amgen anticipates using data from clinical trials conducted in China to advance the development of its oncology portfolio globally.
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. Last year, Amgen launched its first-ever product in China, Repatha (evolocumab), an LDL cholesterol-lowering treatment for reducing the risk of heart attacks and stroke. Amgen says it expects to launch a number of other non-oncology medicines in China over the next several years, including Prolia (denosumab), which reduces the risk of fracture in postmenopausal women with osteoporosis.
Xgeva, Kyprolis and Blincyto as well as the medicines in Amgen’s oncology pipeline, will be manufactured at Amgen’s existing facilities.
In addition, Anthony C. Hooper, former Executive Vice President of Global Commercial Operations at Amgen, has been elected to BeiGene’s Board of Directors.