AstraZeneca collaborates with Amgen on five MAbs

Anglo-Swedish drug major AstraZeneca (LSE: AZN) and Amgen (Nasdaq: AMGN), the world’s largest independent biotech firm,  last night announced an agreement to jointly develop and commercialize five monoclonal antibodies from the Amgen clinical-stage inflammation portfolio: AMG 139, AMG 157, AMG 181, AMG 557 and brodalumab (AMG 827).

AstraZeneca will pay Amgen a one-time $50 million upfront for access to its portfolio and the companies will share both costs and profits. Based on current plans, about 65% of costs for the 2012-2014 period will be funded by AstraZeneca. Thereafter, the companies will split costs equally. Amgen will book sales globally and will retain a low single-digit royalty for brodalumab and a mid single-digit royalty for the rest of the portfolio after which the companies will share profits equally.

The companies believe all the molecules have novel profiles and offer the potential to deliver important treatments across multiple indications in inflammatory diseases. The collaboration will provide Amgen with additional resources to optimally progress its portfolio, and Amgen will benefit from the strong respiratory, inflammation and asthma development expertise of MedImmune, AstraZeneca’s USA-based biologics arm.