Ilex and Millennium Agree to Restructure Ownership in Campath®
30-Oct-2001
CAMBRIDGE, Mass. and SAN ANTONIO, Texas (October 29, 2001) - Millennium Pharmaceuticals, Inc. and ILEX™ oncology, Inc. today announced that they have signed a definitive agreement to restructure their 50-50 joint venture, Millennium & ILEX Partners, L.P. (M&I Partners). As a result of this restructuring, scheduled to close at the end of the year, ILEX will acquire Millennium’s equity interest in the companies’ partnership, while Millennium will receive a series of payments and take a royalty position. Terms of the agreement include an initial cash payment of $20 million and up to an additional $120 million in scheduled payments to Millennium over the next three years. In addition, to maintain participation in the success of Campath®, the partnership’s humanized monoclonal antibody, Millennium will be entitled to payments based on U.S. sales above certain levels beginning in 2005.
"Millennium considers pipeline ownership to be a key element to building value in our company. The sale of our equity interest in M&I Partners will allow us to invest our resources in product candidates for which we have greater ownership and control over downstream development and commercialization activities, while providing a considerable revenue stream to build our Company, " said Mark Levin, president and chief executive officer of Millennium. "We are proud to have successfully accomplished our objectives for Campath by having played a significant role in bringing an important new therapeutic option to patients for whom no other therapies were available."
"Our acquisition of Millennium’s equity interest in the Campath joint venture will streamline the continued development of the drug, " ILEX Chief Executive Officer Richard L. Love said.
Campath® is our first marketed product, which we believe will serve as the foundation in building a fully integrated oncology pharmaceutical company. It has posted strong sales since its launch and continues to validate ILEX’s ability to identify, develop and commercialize promising oncology compounds.”
M&I Partners was formed to complete the development and launch of Campath, which occurred on May 30, 2001 in the U.S. and August 6, 2001 in the European Union, where it is marketed under the tradename MabCampath™. Campath was developed by M&I Partners in collaboration with Schering AG (NYSE:SHR), which has worldwide sales and marketing rights (excluding Japan and East Asia). In the U.S., Campath is marketed by Berlex Laboratories, Inc., Schering’s U.S. affiliate.
Terms of the Agreement
Terms of the agreement include an initial cash payment of $20 million and up to an additional $120 million in scheduled payments to Millennium over the next three years. These payments, which will total $40 million each year from 2002 through 2004, are based on Campath reaching a minimum of $15 million in U.S. sales in each year. Should the $15 million sales threshold not be met by the end of each scheduled payment year, the $40 million payment due will be deferred to the first year in which such threshold is met and added to the cumulative balance due. In addition, Millennium will be entitled to payments based on U.S. sales of Campath above certain levels beginning in 2005.
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