Biogen’s answer to Alkermes’ Tecfidera threat? Buy it, but don’t spend too much
Biogen $BIIB has dealt decisively with a potential lukewarm threat from Alkermes $ALKS to its crucial Tecfidera franchise in multiple sclerosis.
They bought it.
In a deal announced this morning, Biogen agreed to pay $28 million to ante up on a partnership on ALKS 8700 that gives the Boston biotech global commercialization rights to the late-stage therapy. That first payout covers Biogen’s share of the research costs in 2017. And Biogen expects to shell out $50 million on the first milestone in the deal before the end of the year. That comes with a deal embedded with $200 million in milestones and mid-teen royalties on any sales.
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