Biogen exercised its option to further reduce previously negotiated royalty rates payable to Neurimmune on potential sales of the investigational Alzheimer's disease drug aducanumab, the companies disclosed Tuesday. Under the agreed terms, Biogen will make a one-time payment of $50 million to Neurimmune in exchange for a 5-percent reduction of the royalty rates on commercial sales of the human recombinant monoclonal antibody.
The companies initially entered into an agreement in 2007 to jointly develop treatments for Alzheimer's disease, with Biogen paying $150 million to Neurimmune last October to reduce royalty rates on sales of aducanumab by 15 percent. Biogen CEO Michel Vounatsos remarked that the most recent decision "is aligned with our amended agreement from 2017," adding "as we progress our pipeline of candidates for Alzheimer's disease including aducanumab, we hope that a potential treatment for this devastating and debilitating disease will be realised."
FirstWord reports in this therapy area - KOL Insight Alzheimer's Disease: Find out how KOLs expect the market to evolve, which pipeline treatments are most promising, and which clinical trials will shape treatment decisions. Learn more.
In 2014, Biogen inked a deal with Eisai to jointly develop Alzheimer's disease treatments, with the latter company exercising its options last October to co-develop and co-promote aducanumab. However, in February, Biogen announced that it was increasing patient enrolment in a late-stage study of the therapy after observing greater-than-expected variability regarding the primary endpoint of the trial, with shares in the company falling up to 9 percent on the news.
For related analysis, see ViewPoints: Angsty investors sceptical about midstream change to aducanumab trials.
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