Biogen and Eisai announced recently that the companies have amended their existing collaboration agreement on aducanumab, which is commercialised in the US as Aduhelm (aducanumab-avwa). Effective as of 1st January, 2023, Eisai will receive a tiered royalty based on net sales of Aduhelm rather than sharing global profits and losses. The royalty rate starts at two per cent and reaches eight per cent when annual sales exceed $1 billion. Effective immediately, Biogen’s existing final decision-making rights on Aduhelm have converted to sole decision-making and commercialisation rights worldwide, Biogen said in a statement.
Overall, economic arrangements for both companies in 2022 are expected to remain materially unchanged with Eisai’s share of expenses capped at an agreed amount for the costs related to development, commercialisation and manufacturing of Aduhelm for the period from 1st January, 2022 to 31st December, 2022. Once the tiered royalty model commences on 1st January, 2023, Eisai will not participate in Aduhelm’s economics beyond these royalties, the statement added.
It further mentioned that the companies will continue to jointly develop and commercialise the investigational therapy lecanemab. Eisai continues to serve as the lead of lecanemab development and regulatory submissions globally with both companies co-commercialising and co-promoting the product, and Eisai having final decision-making authority. Both companies share economics equally with Eisai booking all sales for lecanemab and Biogen reflecting its 50 per cent share of profits and losses.
The supply agreement related to lecanemab has been extended from five to 10 years. Biogen will manufacture the lecanemab drug substance in its Solothurn, Switzerland facility with the goal of providing reliable commercial supply worldwide, according to the statement.