Biovitrum pays $130 million for three Amgen products
This article was originally published in Scrip
Executive Summary
Biovitrum is to pay $130 million to acquire two Amgen products, Kepivance (palifermin) and Stemgen (ancestim), and a worldwide exclusive licence to Amgen's Kineret (anakinra). Biovitrum says the move will help it expand in North America, Europe, Australia and New Zealand, and add to its top line and cash flow. The Swedish company will pay an upfront payment of $110 million in cash and $20 million in ordinary shares. The agreement includes an inventory, for an undisclosed value, of the three products, and sales milestones and contingent payments and potential royalties if Biovitrum develops modified forms of Kineret. It is indicated in the US for reducing signs and symptoms and structural damage in moderately to severely active rheumatoid arthritis in patients 18 years of age or older who have failed one or more disease-modifying antirheumatic drugs. Kepivance is indicated for oral mucositis in patients with haematological cancers, while Stemgen is used in combination with Neupogen (filgrastim) in the setting of autologous peripheral blood progenitor cell (PBPC) transplantation for patients at risk of poor PBPC. The three drugs generated combined sales of almost $70 million in 2007.