- Eisai Co Ltd (OTC:ESALY) is giving up its right to share in profits from Aduhelm (aducanumab-avwa), which was developed in partnership with Biogen Inc (NASDAQ:BIIB).
- Biogen and Eisai have amended their agreement to give Biogen full authority to make regulatory and sales decisions regarding Aduhelm.
- From 2023, Eisai will receive royalties starting at 2% of Aduhelm's global sales, increasing as sales rise, reaching 8% when Aduhelm's sales exceed $1 billion annually.
- In December, Biogen reduced the price of Aduhelm by about 50% in the wake of lower-than-expected sales.
- Related: Biogen's Alzheimer's Drug Clocks Q4 Sales Of Just $1M, FY22 Earnings Guidance Below Consensus.
- The companies said the financial terms of their partnership to develop another Alzheimer's drug, lecanemab, would remain unchanged.
- Eisai is responsible for leading the regulatory approval process for lecanemab globally, and Biogen is entitled to 50% of profits and losses related to the drug.
- The companies extended their agreement for Biogen to manufacture the drug from five years to 10 years.
- Price Action: BIIB shares closed 0.06% lower at $193.64 during after-hours trading on Monday.
