Alkermes plc licensed the development and commercial rights of its multiple sclerosis treatment, ALKS 8700, to Biogen Inc.
Biogen will receive an exclusive worldwide license to the therapy and will pay Alkermes a "mid-teens" royalty on net worldwide sales, the companies said in a news release.
Biogen will reimburse Alkermes for 50% of the 2017 ALKS 8700 development costs, with an upfront payment of $28 million. Beginning Jan. 1, 2018, Biogen will be responsible for all development expenses. Alkermes may also receive milestone payments for ALKS 8700 of up to $200 million upon certain clinical and regulatory achievements. Biogen anticipates the initial milestone payment of $50 million will be recorded as an expense in 2017.
Alkermes will maintain responsibility for regulatory interactions with the U.S. Food and Drug Administration.
ALKS 8700 is currently in phase 3 development. The company is also running a study evaluating the therapy's gastrointestinal tolerance as compared to Biogen's tecfidera for MS. Alkermes' new drug application to the U.S. FDA will be supported by demonstration of bio-equivalence to tecfidera.
