Healthcare Industry News: kidney disease
News Release - September 15, 2008
Biovitrum to Acquire Kepivance(R) and Stemgen(R) and Exclusively License Kineret(R) from AmgenSTOCKHOLM, SWEDEN and THOUSAND OAKS, CA--(Healthcare Sales & Marketing Network)--Sep 15, 2008 -- Biovitrum AB (publ) (STO: BVT) and Amgen (AMGN ) announced today that they have entered into an agreement under which Biovitrum will acquire the marketed biologic therapeutic products Kepivance® (palifermin) and Stemgen® (ancestim) from Amgen, and will also obtain from Amgen a worldwide exclusive license to Kineret® (anakinra) for its current approved indication. The agreement includes an inventory of the three products at an undisclosed value.
Kineret, Kepivance and Stemgen generated combined sales of nearly $70 million in 2007.
The financial terms of the transaction include an upfront payment of approximately $130 million, consisting of $110 million in cash and ordinary shares of Biovitrum, representing a value of $20 million at the time of closing, subject to certain adjustments provided in the acquisition agreement. In addition, the agreement provides for the payment of sales milestones and additional contingent payments under certain circumstances, including, without limitation, potential royalties in the event that Biovitrum develops modified forms of Kineret. Biovitrum will finance the cash portion of the transaction with debt and existing cash. The transaction is expected to close by the end of 2008.
"The acquisition of these exciting biotechnology therapeutics is fully in line with our business strategy and roadmap for growth We will now expand Biovitrum's presence to include North America, Europe, Australia and New Zealand, which will enable us to serve patients with unmet medical needs in these regions," said Martin Nicklasson, CEO of Biovitrum. "Moreover, the new products will add valuable momentum to our top line performance as well as additional cash flow. The successful agreement is also a validation of our good and strong relationship with Amgen," Nicklasson added.
"We are pleased that Biovitrum, a trusted business partner, has agreed to take on these important medicines and plans to continue making them available to the patients who need them," said Kevin Sharer, Amgen Chairman and CEO, "This deal will allow Amgen to focus its resources on developing new, innovative therapies for serious illnesses, and on expanding its core products to benefit more patients in markets around the world," Sharer added.
About Kineret® (anakinra)
Information about Kineret® can be found at the following Amgen site: http://www.amgen.com/patients/products_kineret.html Healthcare professionals should refer to and rely upon the PDR (Physician's Desk Reference) or the corresponding national labeling texts, and not the information at the Amgen site.
About Kepivance® (palifermin)
Information about Kepivance® can be found at the following Amgen site: http://www.amgen.com/patients/products_kepivance.html Healthcare professionals should refer to and rely upon the PDR (Physician's Desk Reference) or the corresponding national labeling texts, and not the information at the Amgen site.
About Stemgen® (ancestim)
Information about Stemgen® can be found at the following Amgen site: http://www.amgen.com.au/patients/products_enbrel.html Healthcare professionals should refer to national labeling texts, and not the information at the Amgen site.
Biovitrum is a pharmaceutical company with operations in Sweden and in the UK. The company markets a range of specialist pharmaceuticals primarily in the Nordic countries. Using its expertise and experience Biovitrum takes scientific innovation all the way to the market and to specialist indication patients with significant medical need. Research expertise and capabilities include development and production of biotechnology therapeutics, as well as small molecule discovery and development. With revenues of approximately SEK 1.3 billion and around 500 employees, Biovitrum is a significant European specialty pharmaceutical player. It is listed on the OMX Nordic Exchange in Stockholm. For more information go to www.biovitrum.com
Amgen discovers, develops, manufactures and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. With a deep and broad pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives. To learn more about our pioneering science and our vital medicines, visit www.amgen.com
Forward looking statement: Biovitrum
Statements included herein that are not historical facts are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Biovitrum's results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Biovitrum's ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Biovitrum AB's interim or annual reports, prospectuses or press releases.
Forward looking statement: Amgen
This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in Amgen's Form 10-K for the year ended December 31, 2007, and in its periodic reports on Form 10-Q and Form 8-K. Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
No forward-looking statement can be guaranteed and actual results may differ materially from those Amgen projects. Amgen's results may be affected by Amgen's ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments (domestic or foreign) involving current and future products, sales growth of recently launched products, competition from other products (domestic or foreign), difficulties or delays in manufacturing its products. In addition, sales of Amgen products are affected by reimbursement policies imposed by third-party payors, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment as well as U.S. legislation affecting pharmaceutical pricing and reimbursement. Government and others' regulations and reimbursement policies may affect the development, usage and pricing of Amgen products. Furthermore, Amgen's research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. Amgen or others could identify safety, side effects or manufacturing problems with Amgen products after they are on the market. Amgen's business may be impacted by government investigations, litigation and products liability claims. Further, while Amgen routinely obtains patents for its products and technology, the protection offered by its patents and patent applications may be challenged, invalidated or circumvented by its competitors. Amgen depends on third parties for a significant portion of its manufacturing capacity for the supply of certain of its current and future products and limits on supply may constrain sales of certain of its current products and product candidate development. In addition, Amgen competes with other companies with respect to some of its marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for Amgen products are supplied by sole third-party suppliers.
Source: Biovitrum AB
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