STOCKHOLM, SWEDEN--(Marketwire - February 06, 2012) - Sobi and Biogen Idec have agreed to
disclose further details on their agreement
regarding development and commercialization of long-lasting recombinant
factor
VIII and factor IX hemophilia programs, which was restructured in February
2010. Under the new agreement, Biogen Idec assumed full development
responsibilities and costs, as well as manufacturing rights. In addition,
the
cross-royalty rates were reduced and commercial rights for certain
territories
were changed.
Subject to the exercise of an option right, Sobi will have commercial
rights in
Europe, Russia, Turkey and certain countries in the Middle East (the Sobi
territory). Biogen Idec has commercial rights for North America (the Biogen
North American territory) and for rest of the world markets outside of
Europe,
Russia, Turkey and certain countries in the Middle East (the Biogen Direct
territory).
Under the terms of the option right and following Biogen Idec's submission
of a
marketing authorization application to the European Medicines Agency (EMA)
for
each program, Sobi may opt to take over final regulatory approval,
pre-launch
and commercialization activities in the Sobi territory at a cost of USD
10.0
million per program.
Upon EMA regulatory approval of each program, Sobi will be liable to
reimburse
Biogen Idec 50% of the sum of all manufacturing and development expenses
incurred by Biogen Idec from 1 October 2009 through the date on which Sobi
is
registered as the marketing authorization holder, as well as 100% of
certain
development expenses incurred exclusively for the benefit of the Sobi
territory.
To effect Sobi's reimbursement to Biogen Idec for each program, the
cross-royalty structure for direct sales in each company's respective
territories will
be adjusted until the consideration is paid in full. The mechanism for
reimbursement is outlined in the table below.
In the event that Sobi exercises its option right, amounts under the
amended
agreement will become payable as follows:
+------------------+-----------+-------------+----------------------------+
| | | |Rates should Sobi exercise |
| | | |its opt-in right |
+------------------+-----------+-------------+--------------+-------------+
| | |Rate prior to|Base rate | |
|Royalty and net | |first |following |Rate during |
|revenue share |Method |commercial |first |reimbursement|
|rates | |sale |commercial |period |
| | |in Sobi's |sale in Sobi's| |
| | |territory |territory | |
+------------------+-----------+-------------+--------------+-------------+
|Sobi rate to | | | | |
|Biogen Idec on net| | | | |
|sales |Royalty |N/A |10 to 12% |Base rate |
|in the Sobi | | | |plus 5% |
|territory | | | | |
+------------------+-----------+-------------+--------------+-------------+
|Biogen Idec rate | | | | |
|to Sobi on net | | | | |
|sales in |Royalty |2%(3)) |10 to 12% |Base rate |
| the Biogen North | | | |less 5% |
|American territory| | | | |
+------------------+-----------+-------------+--------------+-------------+
|Biogen Idec rate | | | | |
|to Sobi on net | | | | |
|sales in |Royalty |2%(3)) |15 to 17% |Base rate |
|the Biogen Direct | | | |less 5% |
|territory | | | | |
+------------------+-----------+-------------+--------------+-------------+
|Biogen Idec to | | | | |
|Sobi on net | | | | |
|revenue(1)) |Net revenue|10% |50% |Base rate |
|in the Biogen |share | | |less 15% |
|Distributor | | | | |
|territory(2)) | | | | |
+------------------+-----------+-------------+--------------+-------------+
1. Net revenue represents Biogen Idec's pre-tax receipts from third-party
distributors, less expenses incurred by Biogen Idec in the conduct of
commercialization activities supporting the distributor activities.
2. The Biogen Distributor Territory represents Biogen territories where
sales
are derived utilizing a third-party distributor.
3. A credit will be issued to Sobi against its reimbursement of the Opt-in
Consideration in an amount equal to the difference in the royalties
paid by
Biogen Idec to Sobi on sales in the Biogen territory for certain
periods
prior to the first commercial sale
in the Sobi territory versus the rate that otherwise would have been
payable on such sales.
If the reimbursement of the opt-in consideration has not been achieved
within
six years of the first commercial sale of the respective programs, Biogen
Idec
has the right to require Sobi to pay any remaining balances within 90 days
of
the six year anniversary date of the first commercial sale.
Should Sobi not exercise its option right with respect to one or both
programs
or should Sobi terminate the agreement with respect to one or both
programs,
Biogen Idec will obtain full worldwide development and commercialization
rights
for such affected program and will be obligated to pay royalties to Sobi
subject
to separate terms defined under the restructured collaboration agreement.
In
addition, if EMA approval for any program is not granted within 18 months
of the
applicable EMA filing date, Sobi shall have the right to require that the
first
opt-in payment be refunded and revoke its option right for such program.
The information in this press release has also been included in Biogen
Idec's
10K report filed with the SEC (Securities and Exchange Commission) in the
US.
Telephone conference
CEO Geoffrey McDonough and CFO Lars Sandström will be available for
questions at
10:00 a.m. CET. Please call:
Sweden: +46 (0)8 505 598 12
UK: +44 (0)207 750 9950
USA: +1 866 676 58 69
Swedish Orphan Biovitrum (Sobi)
Sobi is a leading integrated biopharmaceutical company dedicated to
bringing
innovative therapies and services to improve the health of rare disease
patients
and their families. The product portfolio comprises about 60 marketed
products
as well as projects in the late clinical phase. Key therapeutic areas are
Inflammation and Genetics & Metabolism. In 2010 Sobi had revenues of SEK
1.9
billion and around 500 employees. The share (STO: SOBI) is listed on OMX
NASDAQ
Stockholm. More information is available atwww.sobi.com.
The information above has been published pursuant to the Swedish Securities
Market Act and/or the Financial Instruments Trading Act. The information
was
released for public distribution on 6 February 2012 at 8.00 a.m. CET.
Sobi Press Release February 6, 2012 in pdf format:
http://hugin.info/134557/R/1582735/494589.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
[HUG#1582735]
