Amgen, Novartis To Collaborate On Alzheimer's Disease And Migraine Programs

(RTTNews) - Amgen Inc (AMGN) on Monday announced a neuroscience collaboration with Novartis AG (NVS) in the areas of Alzheimer's disease and migraine.

The drug maker said the collaboration accelerates its potential entry into Alzheimer's disease by teaming up with Novartis on a differentiated and genetically validated Alzheimer's disease program directed at genetically predisposed individuals at risk of developing the disease.

The collaboration also enables Amgen to focus on the commercialization of its migraine programs in the U.S., Canada and Japan, while leveraging Novartis' commercial capabilities in neuroscience across Europe and other markets.

The agreement combines each company's BACE (beta-site APP-cleaving enzyme-1) programs targeting Alzheimer's disease into a global co-commercialization and co-development arrangement. Novartis' Phase 1/2a BACE inhibitor (CNP520) will be the lead molecule and each company's pre-clinical BACE inhibitor programs will be potential follow-ons.

Amgen will make upfront and milestone payments, and will be responsible for disproportional research and development costs for an agreed-upon period followed by a 50/50 cost and profit share arrangement.

As part of the collaboration, Novartis receives global co-development rights and commercial rights outside of the U.S., Canada and Japan to the investigative molecules in Amgen's migraine portfolio program. This includes AMG 334 in Phase 3 and AMG 301 in Phase 1, as well as an option to commercialize an additional early-stage Amgen molecule in these territories.

In exchange for territory rights, Novartis will fund disproportional amounts of global research expenses for an agreed-upon period on the migraine programs and pay Amgen double-digit royalties on sales.