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ABII » Topics » Abraxane ® Co-Promotion

This excerpt taken from the ABII 10-K filed Mar 31, 2008.

Abraxane® Co-Promotion

On April 26, 2006, we entered into a Co-Promotion and Strategic Marketing Services Agreement with AstraZeneca UK Limited, a wholly owned subsidiary of AstraZeneca PLC. Under the agreement:

 

 

•

  

Abraxis Oncology, one of our divisions, and AstraZeneca agreed to co-promote Abraxane® in the United States beginning on July 1, 2006 for a term of five and one-half years;

 

  •  

AstraZeneca paid to us a $200 million up-front signing fee in May 2006, which is being recognized as deferred revenue over the five and one half year term of the agreement beginning July 1, 2006;

 

 

•

  

The parties are sharing in certain of the costs associated with advertising and promoting Abraxane® in the United States and the cost of certain clinical trials that are part of the product’s overall clinical development program. Any reimbursement from AstraZeneca relating to the cost sharing will be recorded as a reduction of operating expenses;

 

 

•

  

we will supply Abraxane® during the five and one half year term;

 

 

•

  

we will pay AstraZeneca a 22% commission on U.S. net sales of Abraxane® during the term of the agreement, with a trailing commission of ten percent for the first year and five percent for the second year following the end of the five and one half year term. The related commission expense is recorded as a component of selling, general and administrative expenses. Payments commenced in November 2006; and

 

 

•

  

we will be entitled to receive certain milestone payments from AstraZeneca in the event of FDA approvals for new indications for Abraxane® are obtained within specific timelines.

Also, under the terms of this agreement, we granted AstraZeneca a right of first offer to license or co-promote Abraxane® outside the U.S., other than in certain countries, should we seek to license or co-promote Abraxane® outside of the U.S. and a right of first offer to license or co-promote nab™-docetaxel in the U.S. and certain other countries should we seek to license or co-promote nab™-docetaxel in those countries.

This excerpt taken from the ABII 8-K filed Nov 8, 2007.

Abraxane® Co-Promotion

On April 26, 2006, New Abraxis entered into a Co-Promotion and Strategic Marketing Services Agreement with AstraZeneca UK Limited, a wholly owned subsidiary of AstraZeneca PLC. Under the agreement:

 

 

•

  

Abraxis Oncology, one of New Abraxis’ divisions, and AstraZeneca agreed to co-promote Abraxane® in the United States beginning on July 1, 2006 for a term of five and one-half years;

 

  •  

AstraZeneca paid to New Abraxis a $200 million up-front signing fee in May 2006, which is being recognized as deferred revenue over the five and a half year term of the agreement beginning July 1, 2006;

 

 

•

  

The parties are sharing in certain of the costs associated with advertising and promoting Abraxane® in the U.S. and the cost of certain clinical trials that are part of the product’s overall clinical development program. Any reimbursement from AstraZeneca relating to the cost sharing will be recorded as a reduction of operating expenses;

 

 

•

  

New Abraxis will supply Abraxane® during the five and one half year term;

 

 

•

  

New Abraxis will pay AstraZeneca a 22% commission on U.S. net sales of Abraxane® during the term of the agreement, with a trailing commission of ten percent for the first year and five percent for the second year following the end of the five and a half year term. The related commission expense is recorded as a component of selling, general and administrative expenses. Payments commenced in November 2006; and

 

 

•

  

New Abraxis will be entitled to receive certain milestone payments from AstraZeneca in the event of FDA approvals for new indications for Abraxane® are obtained within specific timelines.

Also, under the terms of this agreement, New Abraxis granted AstraZeneca a right of first offer to license or co-promote Abraxane® outside the U.S., other than in certain countries, should New Abraxis seek to license or co-promote Abraxane® outside of the U.S. and a right of first offer to license or co-promote nab™-docetaxel in the U.S. and certain other countries should New Abraxis seek to license or co-promote nab™-docetaxel in those countries.

EXCERPTS ON THIS PAGE:

10-K
Mar 31, 2008
8-K
Nov 8, 2007

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