BeiGene Establishes Strategic Partnership with Amgen and Got $2.7 Billion Investment

According to BioSpace, China-based BeiGene Co. and Thousand Oaks, California-based Amgen jointly announced a global oncology strategic partnership. Amgen significantly expanded its presence in China by taking a 20.5% stake in BeiGene.

Founded in Beijing as a research and development company in 2010, BeiGene is becoming a global leader in the discovery, development, and commercialization of innovative, molecularly targeted and immune-oncology drugs for the treatment of cancer. The company has developed broad internal capabilities utilizing rational drug design to identify and target the genes and proteins that drive cancer, as well as a unique immune-oncology platform.

Under the terms of the strategic collaboration, Amgen is paying about $2.7 billion in cash, or $174.85 per BeiGene American Depositary Share on the Nasdaq, which is a 36% premium to BeiGene’s average share price over the last 30 days as of October 30. Amgen will nominate a person to BeiGene’s board of directors.

Under the deal, BeiGene will commercialize Xgeva (denosumab), Kyprolis (carfilzomib) and Blincyto (blinatumomab) in China. The two companies will split profits and losses evenly. Two of them will revert to Amgen, one after five years, the other after seven years. After that commercialization period ends, BeiGene will be able to retain one product and receive royalties on China sales for another five years on the product rights it returns to Amgen.

The two companies will also collaborate on 20 drugs from Amgen’s oncology pipeline in China and globally. BeiGene will invest up to $1.25 billion in research and development costs. Amgen will pay royalties to BeiGene on sales of any of these drugs outside of China except for AMG 510, which is being developed for solid tumors.

Established in Thousand Oaks, California, in April 1980, Amgen is one of the world’s leading biotechnology companies, deeply rooted in science and innovation to transform new ideas and discoveries into medicines for patients with serious illnesses. It uses cutting-edge science and technology to study the subtlest biological mechanisms in search of therapies that will improve the lives of those who suffer from serious diseases. 

Amgen plans to continue to market its non-cancer drugs in China. For example, earlier this year it launched Repatha for cholesterol in China. It plans to launch several more outside of cancer in China over the next few years, including Prolia for osteoporosis.