AstraZeneca, Allergan Partner for Crohn’s Disease Drug in Deal Worth Up to $1.52 BillionBy
AstraZeneca, through MedImmune, its biologics research and development arm, has entered into a licensing agreement with Allergan for the global rights to MedImmune’s anti-inflammatory candidate, MEDI2070, an interleukin-23 monoclonal antibody in a Phase IIb clinical trial for moderate-to-severe Crohn’s disease, in a deal worth up to $1.52 billion. Under the agreement, Allergan will make an upfront payment to AstraZeneca of $250 million for the exclusive, worldwide license to develop and commercialize MEDI2070. In addition, Allergan may make potential additional payments to AstraZeneca of up to $1.27 billion, payable over a period of up to 15 years, including launch milestone payments of up to $435 million and sales-based milestone payments of $725 million as well as tiered royalties on sales of the product.
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 an original agreement with Amgen.
MEDI2070 is ready for Phase II trials for ulcerative colitis. MedImmune has been leading the clinical development for MEDI2070 under a collaboration agreement AstraZeneca entered into with Amgen in March 2012. Under 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 MEDI2070.
MedImmune will continue the ongoing MEDI2070 Phase IIa study in Crohn’s disease to completion, and will transition the Phase IIb study in Crohn’s disease to Allergan for completion.