Aduhelm (aducanuamab) co-developer Eisai Co. (TYO:4523) has agreed to modify its economic partnership agreement with Biogen (Nasdaq:BIIB).
Starting January 1, 2023, Eisai will receive a tiered royalty on net sales of the Alzheimer’s disease therapy Aduhelm (aducanumab) rather than share profits or losses of the drug.
Eisai would receive between 2% and 8% of annual sales of the Aduhelm.
The Tokyo-based company also has given Biogen total decision-making power and commercialization rates globally for Aduhelm.
Analysts’ projections for Aduhelm have dimmed significantly in the wake of the drug’s approval by FDA in June 2021.
Eisai’s partnership with Biogen on the investigational Alzheimer’s drug lecanemab collaboration will remain unchanged globally. The two companies, however, have agreed to extend a supply agreement from five to 10 years that would have Biogen manufacture the drug candidate.
Lecanemab, like aducanumab, is also an amyloid beta-protein inhibitor.
The two companies had previously agreed to share international profits and losses of the Alzheimer’s drug Aduhelm, which was FDA approved last year but has found limited use to date.
CMS plans on announcing its final national coverage determination for drugs in the same class as Aduhelm in April. In addition, the agency announced draft guidance in January, recommending the drug only for clinical trial participants.
In 2022, Eisai will cover up to $335 million in Aduhelm development, manufacturing, and commercialization costs.
“We believe this new arrangement will be more effective and enable more focused execution with the goal of maximizing the value of both ADUHELM and lecanemab,” said Haruo Naito, CEO at Eisai, in a statement. “Eisai will increase its focus on lecanemab and remains committed to bringing a new treatment option expeditiously to patients in need worldwide.”