BeiGene Announces Global Strategic Oncology Collaboration with Amgen
October 31 2019 - 4:00PM
BeiGene, Ltd. (NASDAQ: BGNE; HKEX: 06160) and Amgen (NASDAQ: AMGN)
today announced a global strategic oncology collaboration for the
commercialization and development in China of Amgen’s XGEVA®
(denosumab), KYPROLIS® (carfilzomib), and BLINCYTO® (blinatumomab),
and the joint global development of 20 oncology assets in Amgen’s
pipeline, with BeiGene responsible for development and
commercialization in China. In connection with the collaboration,
Amgen will purchase a 20.5% stake in BeiGene for approximately $2.7
billion in cash at $174.85 per American Depositary Share (ADS).
“Through this collaboration, Amgen, a true biotech pioneer and
leader in our industry, has recognized the transformative potential
of BeiGene’s unique clinical development capabilities to accelerate
global drug development. We are thrilled to join forces with Amgen
to realize the development and commercialization of this broad
oncology pipeline with the aim of benefitting patients around the
world,” said John V. Oyler, Co-Founder, CEO, and Chairman of
BeiGene. “In addition, this alliance expands the portfolio
available to our market-leading China commercial team, led by Dr.
Xiaobin Wu, with the potential to bring as many as eight internally
discovered and in-licensed innovative treatments to cancer patients
by the end of 2020.”
“This strategic collaboration with BeiGene will enable Amgen to
serve significantly more patients by expanding our reach in the
world’s most populous country. We’ve chosen an innovative strategic
collaborator that can offer commercial and clinical reach with
global quality standards,” said Robert A. Bradway, Amgen’s chairman
and chief executive officer. “Cancer is a leading cause of death in
China and will only become a more pressing public health issue as
the Chinese population ages. We look forward to working with
BeiGene to make a meaningful difference in the lives of millions of
cancer patients in China and around the world.”
Key elements of the collaboration include:
Commercialization of Approved Products in China:
- Under the agreement, BeiGene will commercialize XGEVA, KYPROLIS
and BLINCYTO in China for five or seven years, during which time
the parties will equally share profits and losses. Following the
commercialization period, BeiGene will have the right to retain one
product and will be entitled to receive royalties on sales in China
for an additional five years on the products not retained; and
- XGEVA (denosumab) was approved in China in 2019 for patients
with giant cell tumor of the bone and is in development for
prevention of skeletal-related events in cancer patients with bone
metastases. KYPROLIS (carfilzomib) is in late-stage development in
China for patients with multiple myeloma, and BLINCYTO
(blinatumomab) is in late-stage development in China as a treatment
for adult patients with relapsed or refractory acute lymphoblastic
leukemia (ALL).
Global Clinical Development:
- BeiGene has agreed to jointly develop 20 Amgen oncology
pipeline assets globally, which include targeted small-molecule
agents such as AMG 510, a first-in-class investigational KRAS G12C
inhibitor, as well as BiTE® (Bispecific T cell Engager) antibodies,
for solid and hematologic malignancies;
- Amgen and BeiGene will co-fund global development costs, with
BeiGene contributing up to $1.25 billion worth of development
services and cash over the term of the collaboration. BeiGene is
entitled to receive royalties from global sales of each product
outside of China, with the exception of AMG 510;
- For each pipeline asset that is approved in China, BeiGene will
receive commercial rights for seven years from approval, during
which time the parties will share equally in profits and losses.
BeiGene is also entitled to receive royalties from sales in China
for five years after the seven-year commercial term; and
- BeiGene will also have the right to retain approximately one of
every three approved pipeline assets, up to a total of six, other
than AMG 510, for commercialization in China, during which time the
parties will share in profits and losses.
Amgen has agreed to purchase approximately $2.7 billion of
BeiGene ordinary shares, at a price of $174.85 per ADS, a 36%
premium to BeiGene’s 30-day volume-weighted average share price as
of October 30, 2019. Amgen will receive one seat on BeiGene’s Board
of Directors.
The transactions have been approved by the boards of directors
of both companies and are expected to close in the first
quarter of 2020, subject to approval by a majority vote of
BeiGene’s shareholders pursuant to the listing rules of the Hong
Kong Stock Exchange, the expiration or termination of applicable
waiting periods under applicable antitrust laws, and satisfaction
of other customary closing conditions. BeiGene has already received
commitments from shareholders holding approximately 40% of its
outstanding shares to vote in favor of the transactions.
Morgan Stanley is acting as financial advisor to BeiGene. Mintz
Levin served as legal advisor to BeiGene for the collaboration
agreement; Goodwin Procter served as legal advisor to BeiGene for
the share purchase agreement; and Skadden served as legal advisor
to BeiGene for Hong Kong Stock Exchange listing matters.
BeiGene Conference Call and Webcast
InformationInvestors and analysts are invited to join the
conference call on Thursday, October 31 at 8:00 p.m. ET using the
following dial-in information:
U.S. Toll-Free: +1 (844) 461-9930Hong Kong: +852 5819-4851China:
+86 400-682-8609Conference ID: 7690259
A live webcast of the conference call can be accessed from the
investors section of BeiGene’s website at http://ir.beigene.com/ or
http://hkexir.beigene.com. An archived replay will be available two
hours after the event for 90 days.
About BeiGeneBeiGene is a global,
commercial-stage, research-based biotechnology company focused on
molecularly-targeted and immuno-oncology cancer therapeutics. With
a team of over 3,000 employees in China, the United States,
Australia and Europe, BeiGene is advancing a pipeline consisting of
novel oral small molecules and monoclonal antibodies for cancer.
BeiGene is also working to create combination solutions aimed to
have both a meaningful and lasting impact on cancer patients.
BeiGene markets ABRAXANE® (nanoparticle albumin–bound paclitaxel),
REVLIMID® (lenalidomide), and VIDAZA® (azacitidine) in China under
a license from Celgene Corporation.1
BeiGene Forward-Looking StatementsThis press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and other
federal securities laws, including statements regarding BeiGene’s
plans and expectations for the further development and potential
commercialization of XGEVA, KYPROLIS, BLINCYTO and Amgen’s oncology
pipeline assets, the timing of approvals of BeiGene’s commercial
products in China, the parties’ commitments and the potential
benefits of the collaboration, and the conditions to closing and
expected timing for the closing of the transactions. Actual results
may differ materially from those indicated in the forward-looking
statements as a result of various important factors, including
BeiGene's ability to demonstrate the efficacy and safety of its
drug candidates; the clinical results for its drug candidates,
which may not support further development or marketing approval;
actions of regulatory agencies, which may affect the initiation,
timing and progress of clinical trials and marketing approval;
BeiGene's ability to achieve commercial success for its marketed
products and drug candidates, if approved; BeiGene's ability to
obtain and maintain protection of intellectual property for its
technology and drugs; BeiGene's reliance on third parties to
conduct drug development, manufacturing and other services;
BeiGene’s limited operating history and BeiGene's ability to obtain
additional funding for operations and to complete the development
and commercialization of its drug candidates, as well as those
risks more fully discussed in the section entitled “Risk Factors”
in BeiGene’s most recent quarterly report on Form 10-Q, as well as
discussions of potential risks, uncertainties, and other important
factors in BeiGene's subsequent filings with the U.S. Securities
and Exchange Commission. All information in this press release is
as of the date of this press release, and BeiGene undertakes no
duty to update such information unless required by law.
BeiGene Investor Contact |
BeiGene Media Contact |
Craig West |
Liza Heapes or Vivian Ni |
+1 857-302-5189 |
+1 857-302-5663 or +1 857-302-7596 |
ir@beigene.com |
media@beigene.com |
________________________1 ABRAXANE®, REVLIMID® and VIDAZA® are
registered trademarks of Celgene Corporation.
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