Biogen, Eisai Amend Collaboration Agreement On Alzheimer's Disease Treatments

Biogen Inc. (BIIB) and Eisai Co., Ltd. (ESALY.PK) have amended their existing collaboration agreement on Alzheimer's disease treatments. The collaboration on Aducanumab, the Alzheimer's treatment drug jointly developed by Biogen and Eisai, will be converted from Eisai sharing of global profits and losses to a global royalty arrangement, effective January 1, 2023. The another Alzheimer's drug Lecanemab collaboration will continue unchanged globally, the companies said in a statement.

Aducanumab is commercialized in the United States as ADUHELM (aducanumab-avwa). Effective as of January 1, 2023, Eisai will receive a tiered royalty based on net sales of ADUHELM rather than sharing global profits and losses. The royalty rate starts at 2% and reaches 8% when annual sales exceed $1 billion.

Effective immediately, Biogen's existing final decision-making rights on ADUHELM have converted to sole decision making and commercialization rights worldwide. Overall, economic arrangements for both companies in 2022 are expected to remain materially unchanged with Eisai's share of expenses capped at an agreed amount for the costs related to development, commercialization, and manufacturing of ADUHELM for the period from January 1, 2022 to December 31, 2022.

Meanwhile, Biogen and Eisai said that they will continue to jointly develop and commercialize the investigational therapy lecanemab.

Eisai continues to serve as the lead of lecanemab development and regulatory submissions globally with both companies co-commercializing and co-promoting the product, and Eisai having final decision-making authority.

The companies share economics equally with Eisai booking all sales for lecanemab and Biogen reflecting its 50% share of profits and losses.

The supply agreement related to lecanemab has been extended from 5 to 10 years.

Biogen will manufacture the lecanemab drug substance in its Solothurn, Switzerland facility with the goal of providing reliable commercial supply worldwide.

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