Biotech Values

[DewDiligence]

AGN Out-Licenses ExonHit Compound to BMY

[This is an impressive case of business development by AGN. From BMY, AGN receives $40M up-front and up to $373M in clinical/regulatory (*not* sales-based) milestones; of these amounts, AGN has to pass through to its own licensor, ExonHit, only $4M up-front and $32M in potential milestones. (The pass-through amounts are known because ExonHit issued its own PR on the deal: http://finance.yahoo.com/news/ExonHit-Reports-outLicensing-bw-2378802375.html?x=0&.v=1 .) Not bad for a compound that has completed only phase-1; moreover, AGN retains the rights to AGN-209323 for ophthalmic indications.]

http://finance.yahoo.com/news/BristolMyers-Squibb-and-bw-2832262659.html?x=0&.v=1

›Bristol-Myers Squibb and Allergan Enter Global Agreement on Investigational Neuropathic Pain Medicine

Source: Bristol-Myers Squibb
Wednesday March 3, 2010, 7:30 am EST

PRINCETON, N.J. & IRVINE, Calif.--(BUSINESS WIRE)--Bristol-Myers Squibb Company (NYSE: BMY) and Allergan, Inc. (NYSE: AGN) today announced a global agreement for the development and commercialization of AGN-209323, a Phase II-ready, orally administered small molecule in clinical development for neuropathic pain.

Under the terms of the agreement, Allergan will grant to Bristol-Myers Squibb exclusive worldwide rights to develop, manufacture and commercialize AGN-209323 and backup compounds. The agreement encompasses all potential indications except ophthalmology indications for products formulated for local delivery to the eye, where Allergan will retain certain rights. Bristol-Myers Squibb will make an upfront payment of $40 million, potential AGN-209323 related development- and regulatory-based milestone payments of up to $373 million, and royalty payments on worldwide sales.

“There is significant unmet medical need for a more efficacious and tolerable therapy for neuropathic pain,” said Francis Cuss, senior vice president, Discovery and Exploratory Clinical Research, Bristol-Myers Squibb. “We are pleased to have the opportunity to develop this potential first-in-class compound that could help patients prevail over chronic pain and strengthen our neuroscience pipeline.”

“We are fortunate to have a deep R&D pipeline, and believe that by partnering programs that extend into primary care, we can maximize the value of our science,” said Scott Whitcup, M.D., executive vice president, Research & Development and Chief Scientific Officer, Allergan. “We are excited to have a partner interested in our technology and committed to developing AGN-209323 for neuropathic pain.”

…About AGN-209323

AGN-209323 is an orally administered small molecule that could relieve the symptoms of neuropathic pain through a potential novel mechanism of action. It was discovered as part of a collaboration between Allergan and ExonHit Therapeutics SA.‹