By Lisa Beilfuss
Bristol-Myers Squibb Co. said Thursday that it agreed to
transfer North America commercialization rights of its cancer drug
Erbitux to Eli Lilly & Co.
The two pharmaceutical companies collaborated on the drug, which
treats certain advanced colorectal, head and neck cancers, for 14
years.
ImClone Systems Inc., which co-developed Erbitux with
Bristol-Myers as its U.S. partner, won regulatory approval for the
drug in 2004. In 2008, Lilly bought ImClone for $6.5 billion.
Erbitux was initially cleared to treat advanced cases of colorectal
cancer. Two years later, the drug was approved to treat head and
neck cancer.
"Fully bringing Erbitux into the Lilly Oncology portfolio
accelerates Lilly's commitment and leadership in gastrointestinal
cancers to include an effective treatment for advanced colorectal
cancer as well as head and neck cancer," said Sue Mahony, president
of Lilly Oncology.
The rights transfer includes full commercialization and
manufacturing operational responsibilities for Erbitux in North
America. The companies said in a joint statement that the
transition is expected to be completed in the fourth quarter.
Bristol-Myers will receive tiered royalties based on net product
sales in North America through September 2018.
In 2014, Bristol-Myers reported $723 million in revenue from
Erbitux, a 4% increase from 2013 and about 4.5% the drug maker's
top line. Most of that revenue came from North America.
Merck KGaA of Germany has been ImClone's European partner for
Erbitux. The drug brought in $904 million for Merck last year,
representing about 15% of the company's overall sales.
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