Affymax (AFFY) Settles with J&Js (JNJ) Janssen Biotech; Will Pay $13M in Fees, Milestones
Tweet
Share
E-mailGet Alerts AFFY Hot Sheet
Join SI Premium – FREE
Affymax, Inc. (Nasdaq: AFFY) has reached a global settlement agreement with Janssen Biotech, Inc. (a subsidiary of Johnson & Johnson (NYSE: JNJ)) and certain of its affiliated companies to end the arbitration and litigation related to certain intellectual property emerging from a 1992-1995 research collaboration.
Under the agreement, Affymax obtains a release of claims, a covenant not to sue and license to the intellectual property in dispute, thereby eliminating potential claims by Janssen regarding the use, manufacture, import, sale and licensing of peginesatide worldwide.
As part of the settlement, Affymax will pay Janssen upfront fees and milestones not to exceed $13 million dollars. Upfront fees consist of two installment payments: $6 million paid immediately and $2 million by June 30, 2012. Milestone payments consist of a $2.5 million payment on U.S. approval of peginesatide and $2.5 million on approval of peginesatide in Europe. As much as half of these amounts are subject to reimbursement by Affymax’s development and commercialization partner, Takeda Pharmaceutical Company Limited. In addition, the settlement provides for Janssen to receive a low single-digit royalty on net sales in the countries of Europe, Mexico, Canada and Japan, until mid-2016. No royalties will be paid on U.S. sales of peginesatide.
Under the agreement, Affymax obtains a release of claims, a covenant not to sue and license to the intellectual property in dispute, thereby eliminating potential claims by Janssen regarding the use, manufacture, import, sale and licensing of peginesatide worldwide.
As part of the settlement, Affymax will pay Janssen upfront fees and milestones not to exceed $13 million dollars. Upfront fees consist of two installment payments: $6 million paid immediately and $2 million by June 30, 2012. Milestone payments consist of a $2.5 million payment on U.S. approval of peginesatide and $2.5 million on approval of peginesatide in Europe. As much as half of these amounts are subject to reimbursement by Affymax’s development and commercialization partner, Takeda Pharmaceutical Company Limited. In addition, the settlement provides for Janssen to receive a low single-digit royalty on net sales in the countries of Europe, Mexico, Canada and Japan, until mid-2016. No royalties will be paid on U.S. sales of peginesatide.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- FDA authorizes 11 ZYN Ultra nicotine pouches for Philip Morris
- Solowin Holdings marks 10 years, expands into stablecoins and AI
- Elroy Air wins $46M U.S. Army contract for cargo drone system
Create E-mail Alert Related Categories
Corporate News, FDA, LitigationSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
