Dive Brief:
- Biogen has ended a licensing agreement with Mitsubishi Tanabe Pharma, halting further collaboration work on development of amiselimod (or MT-1303), the Japanese company said in a Jan. 27 statement.
- The news is not entirely unexpected — Biogen said it had discontinued development of the autoimmune disease candidate in a succinctly worded update tucked into an earnings update last October.
- Biogen had paid $60 million upfront to gain access to MT-1303 in September 2015. At the time, Biogen hoped the compound could be developed into a best-in-class S1P modulator — a class of drugs that includes Novartis' Gilenya (fingolimod).
Dive Insight:
Following Biogen’s announcement last year that it would discontinue development of MT-1303, Mitsubishi Tanabe and Biogen began discussions and decided to terminate the agreement, the Japanese pharma said.
Under the now-defunct deal, Biogen had been granted exclusive rights to the drug globally, except in Japan and Asia. Mitsubishi Tanabe will now regain worldwide rights for all indications and plans to push forward with development, although future work could involve a partner.
Without Biogen at the table, Mitushibishi Tanabe is now responsible for all development costs and loses a shot at milestone payments worth as much as $484 million.
Biogen, on the other hand, is in the midst of some transition, as new CEO Michel Vounatsos attempts to refocus the company on neurology and rejuvenate mainstay franchises like Tecfidera (dimethyl fumarate).
The Massachusetts biotech recently won approval for the first spinal muscular atrophy drug, Spinraza (nusinersen). While Spinraza is forecast to eventually bring in blockbuster-level sales, Biogen will likely face a tough ramp up in the near term as payers may balk at the drug's steep price tag.