Watson Pharmaceuticals Inc. (NYSE:WPI - News) and Amgen Inc. (NasdaqGS:AMGN - News) recently announced a collaboration agreement for the worldwide development and commercialization of oncology antibody biosimilar medicines.
According to the agreement, Amgen will be responsible for developing, manufacturing and initially commercializing the products. Watson Pharma will contribute $400 million towards the co-development of the biosimilars, which will include the provision of development support, along with sharing product development risks. Moreover, Watson Pharma will use its significant expertise for the commercialization and marketing of products, together with effectively managing the lifecycle of the biosimilar products.
The products developed under the collaboration will be sold under a joint Amgen/Watson label. Also, as a part of the collaboration, Watson Pharma will initially receive royalties and sales milestones from product revenues. Meanwhile, the terms of the collaboration prohibit the production of any biosimilars of Amgen's proprietary products.
We believe that this deal will help expand Watson Pharma’s biosimilar and generic portfolio, which will help drive the company’s long-term growth.