Amgen and Watson Pharmaceuticals will collaborate to develop and commercialize several oncology antibody biosimilar medicines.

Under the terms of the agreement, Amgen will assume primary responsibility for developing, manufacturing and initially commercializing the oncology antibody products.  Watson will contribute up to $400 million in co-development costs over the course of development, including the provision of development support, and will share product development risks. Watson will initially receive royalties and sales milestones from product revenues. The collaboration will not pursue biosimilars of Amgen's proprietary products.

"This collaboration places Amgen and Watson in an unparalleled position in the global biosimilars market by capitalizing on best-in-class capabilities in both innovative biologics and specialty pharmaceuticals and generics," said Paul Bisaro, president and chief executive officer at Watson.