Amgen’s Expansion Plans in China Underway

Amgen has completed the transaction announced in November 2019 for the strategic collaboration with BeiGene that aims to significantly accelerate and expand Amgen’s oncology presence in China. BeiGene is a research-based, oncology-focused biotechnology company with an established team in China, including 700 in the commercial organization and a 600 in the clinical development organization. As part of the collaboration Amgen will acquire a 20.5% stake in BeiGene for approximately $2.7 billion in cash.
 
“There continues to be substantial unmet medical need in China, particularly for patients with cancer,” said Robert A. Bradway, Amgen’s chairman and chief executive officer.  “We have been impressed with what BeiGene has accomplished, particularly in research, clinical development and commercialization, and we look forward to working together to advance new oncology therapeutics for patients in China and around the world.”
 
As previously announced, BeiGene will commercialize XGEVA, KYPROLIS and BLINCYTO in China during which time the parties will equally share profits and losses. Two of these products will revert to Amgen, one after five years and one after seven years. Following the commercialization period, BeiGene will have the right to retain one product and will be entitled to receive royalties on sales in China for an additional five years on the products not retained. XGEVA was launched in China in September of this year; KYPROLIS and BLINCYTO are both in Phase 3 trials in China. 
 
The two companies will collaborate to advance 20 medicines from Amgen’s innovative oncology pipeline in China and globally. BeiGene will share global research and development costs and contribute up to $1.25 billion to advance these medicines. Amgen will pay royalties to BeiGene on sales of these products outside of China, with the exception of AMG 510, Amgen’s first-in-class KRASG12C inhibitor that is being studied as a potential treatment for solid tumors. 
 
Of the 20 oncology medicines, BeiGene will assume commercial rights in China for seven years after launch for those that receive approval in China, including AMG 510. After this time, BeiGene will retain rights to up to six of these products in China, excluding AMG 510, while rights on remaining products revert to Amgen. 
 
Amgen will continue to commercialize its non-oncology product portfolio in China. Earlier this year, Amgen launched its first-ever product in China, Repatha, an LDL cholesterol-lowering treatment proven to reduce the risk of heart attacks and stroke. Amgen expects to launch a number of other non-oncology medicines in China over the next several years, including Prolia, which reduces the risk of fracture in postmenopausal women with osteoporosis. 
 
XGEVA, KYPROLIS and BLINCYTO, as well as the medicines in Amgen’s oncology pipeline, will be manufactured at Amgen’s existing facilities.