BIOGEN IDEC AND PDL FORM GLOBAL ALLIANCE
Biogen Idec and Protein Design Labs have formed a broad collaboration for the joint development, manufacture and commercialization of three Phase II antibody products.
The agreement provides for shared development and commercialization of daclizumab in multiple sclerosis, for indications other than transplant and respiratory diseases, and for shared development and commercialization of M200 (volociximab) and HuZAF (fontolizumab) in all indications.
Under terms of the agreement, PDL will receive an upfront payment of $40 million, and Biogen Idec will purchase $100 million of common stock from PDL. If multiple products are developed successfully in multiple indications and all milestones are achieved, PDL could receive certain development and commercialization milestone payments totaling up to $660 million. Of these, $560 million are related to development, and $100 million are related to commercialization of the collaboration products.
Biogen Idec and PDL will share equally the costs of all development activities and all operating profits from each collaboration product within the U.S. and Europe. The companies will jointly oversee development, manufacturing and commercialization plans for collaboration products, and they intend to divide implementation responsibilities to leverage each company's capabilities and expertise. Each party will have co-promotion rights in the U.S. and Europe. Outside the U.S. and Europe, Biogen Idec will fund all incremental development and commercialization costs as well as pay a royalty to PDL for sales of collaboration products.