Amgen collects $50M in heart failure drug deal with Cytokinetics

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Amgen has exercised its option to obtain an exclusive license, globally (excluding Japan), to Cytokinetics' cardiac contractility program. The license includes CK-1827452, a new cardiac myosin activator being developed for the treatment of heart failure.

Under the terms of their 2006 collaboration and option agreement, the Thousand Oaks, Calif.-based Amgen has agreed to pay the San Francisco-based Cytokinetics a non-refundable exercise fee of $50 million and has assumed responsibility for development and commercialization of CK-1827452 and related compounds, at its expense, subject to specified development and commercial participation rights of Cytokinetics.

In December 2006, the companies entered into a collaboration to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. In connection with the execution of the agreement, Amgen paid Cytokinetics approximately $75 million, comprised of a non-refundable up-front license and technology access fee of $42 million and equity investment of approximately $33 million. At that time, Amgen received an option to obtain an exclusive license to Cytokinetics' cardiac contractility program, (including CK-1827452).

Under the agreement, Cytokinetics is eligible to receive pre-commercialization and commercialization milestone payments of up to $600 million on CK-1827452 and other products arising from the collaboration, and royalties that escalate based on increasing levels of annual net sales of products commercialized under the agreement. Cytokinetics also could earn increased royalties by sharing certain phase 3 development costs. In that case, Cytokinetics could co-promote products in North America and would have an agreed role in commercialization activities in North America. The collaboration is global, excluding Japan.

CK-1827452, a novel cardiac myosin activator, has been the subject of a clinical trials program comprised of multiple Phase 1 and Phase 2a trials.