Amgen and AstraZeneca have agreed to jointly develop and commercialize five monoclonal antibodies from Amgen's clinical inflammation portfolio (AMG 139, AMG 157, AMG 181, AMG 557 and brodalumab (AMG 827)).

AstraZeneca will make a one-time $50 million upfront payment To Amgen and the companies will share both costs and profits. The collaboration will provide Amgen with additional resources to optimally progress its portfolio, which both companies believe offer the potential to deliver important treatments across multiple indications in inflammatory diseases. Astra Zeneca will also provide Amgen with development expertise in respiratory, inflammation and asthma through MedImmune, AstraZeneca's biologics arm. The collaboration will also capitalize on AstraZeneca's global commercial reach in respiratory and gastrointestinal diseases. The agreement does not include certain territories previously partnered by Amgen for brodalumab with Kyowa Hakko Kirin and AMG 557 with Takeda.

Based on current plans, approximately 65% of costs for the 2012-2014 period will be funded by AstraZeneca, after which the companies will split costs equally. Amgen will book sales globally and retain a low single-digit royalty for brodalumab and a mid single-digit royalty for the rest of the portfolio, after which the companies will share profits equally.

AstraZeneca will lead the development and commercial strategy of AMG 139, AMG 157 and AMG 181, while Amgen will lead the development and commercial strategy of brodalumab and AMG 557. Each development and commercialization lead will be under the oversight of joint governing bodies. For brodalumab, commercial promotion will be split. Amgen will promote in dermatology indications in the U.S. and Canada, and in rheumatology indications in the U.S., Canada and Europe. AstraZeneca will promote in respiratory and, initially, in dermatology indications of brodalumab across all territories outside the U.S., Canada and those markets where Amgen has existing partnerships. Allocation of promotional rights for other territories, indications and molecules will be agreed later between the companies.

Kevin Sharer, chairman and CEO at Amgen, said, "We believe this collaboration has the potential to bring more therapies to patients sooner, across more geographic areas. We are impressed with AstraZeneca's extensive experience…and believe this collaboration is an opportunity to work with a partner that has leading regulatory and commercial expertise in inflammation indications."