Amgen Inc. has deepened its presence in oncology --
a buzzing sector -- with an exclusive
licensing deal with ImmunoGen Inc. (NASDAQ:IMGN), a developer of potential cancer therapies. Amgen will pay $1 million up-front and $34 million in potential milestone payments, plus royalties, to use ImmunoGen's technology to develop anticancer therapies for solid tumors.
The deal expands Amgen's therapeutic pipeline, which the Thousand Oaks, Calif., biotech has been
working to diversify (The Deal Pipeline subscription required) since safety concerns about its flagship anemia products hammered revenue. Since laying off 14% of its staff in 2007, Amgen has made a handful of strategic investments. The most promising near-term product is the osteoporosis drug denosumab, or
D-mab (The Deal Pipeline subscription required), which is being reviewed by U.S. regulators.
In the meantime, Amgen's major products are hurting. All of them showed revenue losses in the most recent quarter. That's not to say it doesn't have capital to work with. It raised $2 billion in a January bond sale and had $10 billion at the end of the quarter. It's cash that has allowed Amgen to place small bets like its licensing deal with ImmunoGen. -
Suzanne Stevens
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