Thursday, June 28, 2012

Otsuka Pharmaceuticals and Kyowa Hakko Kirin sign an alliance in the field of Oncology and Diabetes

Otsuka Pharmaceutical Co. Ltd.and Kyowa Hakko Kirin Co., Ltd. have announed an agreement to pursue a strategic alliance in the fields of diabetes and oncology. 

As per the terms of the agreement,  Kyowa Hakko Kirin will receive exclusive development and marketing rights in Japan to saxagliptin (Onglylza), which are currently held by Otsuka. In return, Otsuka will receive Yen 3.0 billion from Kyowa Hakko Kirin as the initial payment and  Yen 8.2 billion at the time of its approval in Japan. Furthermore, Otsuka will receive running royalties after the launch of saxagliptin in proportion to its revenue. Approval for Saxagliptin in Japan is expected next year, as earlier Otuska announced they will be filing saxagliptin for approval by March 2012 or a little later.

Otsuka and Kyowa Hakko Kirin have agreed to pursue a strategic alliance with respect to Kyowa Hakko Kirin’s oncology portfolio in Japan and Asia. Otsuka and Kyowa Hakko Kirin have both identified oncology as a key therapeutic area in their pharmaceutical businesses and the establishment of this alliance will strengthen each other’s pharmaceutical business.