Kyowa Hakko to receive potential $520 million from Amgen

THOUSAND OAKS, Calif. Amgen will pay Kyowa Hakko Kogyo up to $520 million for the rights to the company’s experimental antiallergic drug KW-0761, according to published reports.

Under the agreement, Amgen will make an upfront payment of $100. Kyowa Hakko will also receive up to $420 million in additional payments including a milestone payment for Amgen's development and marketing of the antibody drug in the global market excluding Japan, China, South Korea and Taiwan. Kyowa will also receive royalties on the sales of the drug if it is successfully developed and marketed.

KW-0761 is currently being studied in inflammation and oncology settings. Kyowa Hakko has completed phase 1 early clinical studies of KW-0761 in allergic rhinitis patients, and is currently conducting phase 1 studies in lymphoma patients.

Amgen will initially acquire rights to develop KW-0761 in all non-oncology areas, while Kyowa Hakko will continue its development activities in oncology until the completion of the phase 2 clinical studies on patients.