Biogen to take sole commercial rights for Alzheimer’s drug Aduhelm, Eisai gets royalty
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Biogen (NASDAQ:BIIB) and Eisai (OTCPK:ESALY)
(OTCPK:ESALF)
amended their collaboration agreement on Alzheimer's therapy Aduhelm (aducanumab) giving sole global commercialization rights to the Cambridge, Mass.-based company while the Japanese drugmaker will receive royalty.
âThis amended collaboration agreement will increase operational efficiency and agility in addressing market developments, including the final determination of CMS on coverage of ADUHELM,â said Biogen CEO Michel Vounatsos.
In January, CMS had proposed to limit coverage of Aduhelm only for those currently enrolled in clinical trials.
The companies said that effective Jan. 1, 2023, Eisai will receive a 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 $1B.
Effective immediately, Biogenâs existing final decision-making rights on Aduhelm have converted to sole decision making and commercialization rights worldwide.
The companies noted that overall, economic arrangements for the two in 2022 are expected to remain materially unchanged.
Once the tiered royalty model begins in 2023 Eisai will not participate in Aduhelm's economics beyond the royalties.
The companies, however, 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 the product.
Eisai has final decision-making authority on lecanemab.
In addition, the companies said that the supply agreement related to lecanemab has been extended from five to 10 years.
Biogen will manufacture the lecanemab drug substance in its Solothurn, Switzerland facility.
Earlier in March, it was reported that Biogen laid off more than 100 workers â the vast majority in its Alzheimer's division â as a result of commercial failure of the Alzheimer's drug Aduhelm.