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.

Endpoints News

To read Endpoints News become a free subscriber

Unlock this article instantly, along with access to limited free monthly articles and our suite of newsletters