Biovitrum pays Amgen initial $130M for drugs

Sweden's Biovitrum has acquired rights to three marketed products from US biotechnology giant Amgen. These are Kepivance (palifermin) and Stemgen (ancestim), as well as a worldwide exclusive license to Kineret (anakinra) for its current approved indication, which together generated sales of nearly $70.0 million in 2007.

The terms of the transaction include an upfront payment of around $130.0 million, consisting of $110.0 million in cash and ordinary shares of Biovitrum, representing a value of $20.0 million at the time of closing, subject to certain adjustments. In addition, the accord provides for sales milestones and additional contingent payments under certain circumstances, including, without limitation, potential royalties in the event that Biovitrum develops modified forms of Kineret. The transaction is expected to close by the end of 2008.

"The acquisition of these exciting biotechnology therapeutics is fully in line with our business strategy and roadmap for growth. We will now expand Biovitrum's presence to include North America, Europe, Australia and New Zealand, which will enable us to serve patients with unmet medical needs in these regions," said Martin Nicklasson, chief executive of Biovitrum.