Up to $420M deal for Kyowa Hakko/ Amgen

Japan's Kyowa Hakko Kogyo has entered an agreement whereby US biotechnology giant Amgen will receive an exclusive license to develop and commercialize its humanized monoclonal antibody KW-0761 worldwide, except in Japan, Korea, China and Taiwan, where the Japanese firm will retain rights.

Under the terms of the deal, Amgen will make an upfront payment to Kyowa Hakko of $100.0 million. The latter could receive as much as $420.0 million in additional payments, including development, approval and sales milestones. Kyowa Hakko will also be entitled to double-digit royalties on sales.

KW-0761 is currently being studied in inflammation and oncology settings. Kyowa Hakko has completed Phase I studies of the agent in healthy volunteers and allergic rhinitis patients, and is currently conducting Phase I trials in lymphoma patients. Amgen will initially acquire rights in all non-oncology indications, and the Japanese drugmaker will continue its development activities in oncology until the completion of Phase IIa.