US-based Amgen has closed the acquisition of a 20.5% stake in Chinese biopharmaceutical firm BeiGene for approximately $2.8bn to support the expansion of its oncology footprint in China.
BeiGene is a commercial-stage oncology firm focused on developing molecularly targeted and immuno-oncology drug candidates for the treatment of cancer.
Former Amgen global commercial operations executive vice president Anthony Hooper has been appointed to BeiGene’s board of directors.
BeiGene will market XGEVA (denosumab), KYPROLIS (carfilzomib) and BLINCYTO (blinatumomab) in China, sharing profits and losses equally between both the companies.
After the completion of the commercialisation period, BeiGene will hold the right to retain one of the three products, and Amgen would re-gain the other two products at five years and seven years each.
In addition, BeiGene will hold the right to receive royalties on sales of the products returned to Amgen in China, for an additional period of five years.
Amgen said that it will partner with BeiGene to commercialise 20 medicines from its advanced oncology pipeline in China and across the world.
BeiGene would bear a portion of global R&D expenses and contribute up to $1.25bn, where Amgen would pay royalties to BeiGene on the sales of these products outside of China, except for AMG 510 for solid tumours, which is under clinical studies.
In addition, BeiGene would hold commercial rights for 20 oncology medicines including AMG 510, for seven years, following the launch and regulatory approval in China.
After the commercialisation period, BeiGene would retain rights to up to six of the 20 products in China, except AMG 510, while Amgen while re-gain the rights on remaining products, and pay royalties to BeiGene on sales of the products in China, for five years.
Amgen intends to use data from Chinese clinical trials to advance its oncology portfolio, and manufacture the XGEVA, KYPROLIS and BLINCYTO, and other oncology medicines at its existing facilities. It will continue marketing its non-oncology product portfolio in China.
Amgen chairman and chief executive officer Robert Bradway said: “There continues to be substantial unmet medical need in China, particularly for patients with cancer.
“We have been impressed with what BeiGene has accomplished, particularly in research, clinical development and commercialization, and we look forward to working together to advance new oncology therapeutics for patients in China and around the world.”