Biogen Idec, Genentech amend CD20 partnership
Biogen Idec Inc. (NASDAQ:BIIB) and Genentech Inc. amended a 2003 deal covering antibodies against CD20, specifically ocrelizumab and GA101. The unit of Roche (SIX:ROG; OTCQX:RHHBY) will now assume full responsibility for further development and commercialization of ocrelizumab, which is in Phase II testing in multiple sclerosis (MS). Biogen Idec, which previously had co-development rights to the mAb, is now eligible for tiered royalties of 13.5-24% on U.S. sales of ocrelizumab. The companies said the changes would allow Biogen Idec to avoid a further concentration of its R&D spending in phase III trials for MS.
Biogen Idec will increase its share of development and commercialization expenses to 35% from 30% for GA101, which is in Phase III testing for non-Hodgkin's lymphoma (NHL) and chronic lymphocytic lymphoma (CLL). Biogen Idec also will be eligible for 35-39% of GA101 profits. Upon achievement of certain GA101 sales milestones, Biogen Idec's share of co-promotion profits for the partners' Rituxan rituximab will decrease to 35% from 40%. Biogen Idec also will pay $10 million to Genentech as compensation for previously incurred expenses for GA101. ...