Expanding on its 2015 neuroscience collaboration with Novartis (NYSE:NVS), Amgen (NASDAQ:AMGN) has agreed to co-promote migraine prevention med erenumab in the U.S. while allowing Novartis to exclusively market the drug in Canada. Amgen retains exclusive rights in Japan and Novartis in the rest of the world.
Under the terms of the agreement, Amgen will receive milestone payments from Novartis starting this year and will share U.S. commercialization costs. Amgen will book sales of erenumab in the U.S. and pay Novartis a royalty on net sales. Novartis will book sales in the rest of the world, ex-Japan, and will pay Amgen royalties on net sales. Novartis will assume remaining global development costs up a cap and then will share with Amgen thereafter.
Phase 3-stage erenumab, a fully human monoclonal antibody, inhibits the calcitonin gene-related peptide (CGRP) receptor, which is believed to transmit signals that cause incapacitating pain.
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