NEW YORK (Thomson Financial) - AMAG Pharmaceuticals Inc. Tuesday said it has
signed an agreement with 3SBio Inc. to develop and commercialize ferumoxytol in
China.
Ferumoxytol is an intravenous iron replacement therapy. A New Drug
Application for marketing approval was accepted for filing by the Food and Drug
Administration in February.
Under the terms of the agreement, AMAG will grant 3SBio exclusive
development and commercialization rights for the product in China but will
retain all manufacturing rights. In a separate agreement, it will provide a
commercial supply agreement to 3SBio at a predetermined price.
Initially, 3SBio will use the drug to treat chronic kidney disease patients,
though there will be an option to expand treatment into other uses.
3SBio will clinically develop, register and commercialize the drug in China
and will pay AMAG an upfront payment of $1 million. AMAG is eligible to receive
additional payments upon regulatory approval and other specified indication. It
is also entitled to receive tiered royalties of up to 25% of the sales.
The two companies will form a steering committee to oversee the development
and commercialization. Each company will have equal representation on the
committee.
The agreement has an initial duration of 13 years but will be automatically
renewed if minimum sales thresholds are met.
Shares of AMAG closed Friday at $38.62 while 3SBio shares closed at $10.25.
Ryan Vlastelica
rv/vj
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