Great news! Baiji Shenzhou announced the establishment of a global cancer strategic partnership with Amgen

November 1, 2019 / BIOON / -- Baiji Shenzhou (NASDAQ (8292.3602, - 11.62, - 0.14%) code: bgne; Hong Kong stock exchange code: 06160) and Amgen (NASDAQ Code: AMGN) today announced a global cancer strategic partnership The cooperation includes the development and commercialization of Amgen's products in China, such as agavir ® (xgeva ®) desumab injection, kyprolis ® kafzomib for injection and blincyto ® bilintomolobib for injection, as well as the joint development of 20 Amgen anti-tumor pipeline drugs worldwide, of which Baiji Shenzhou will be responsible for the development and commercialization in China At the same time, Amgen will buy 20.5% of Baiji's Shenzhou shares for about $2.7 billion in cash, or $174.85 per share of American Depository stock (ads) Mr Ou Lei Qiang, co-founder, chairman and CEO of Baiji Shenzhou, said: "this cooperation with Amgen, a biotech pioneer and industry leader, shows that Amgen fully recognizes the unique clinical development strength of Baiji Shenzhou in China and can help accelerate the global drug development process We are very pleased to work with Amgen to develop and commercialize its extensive anti-tumor pipeline, aiming to benefit patients all over the world as soon as possible In addition, the conclusion of the strategic alliance will further broaden the product portfolio of the Chinese commercialization team led by Dr Wu Xiaobin By the end of 2020, we will probably bring up to eight innovative products independently developed and authorized to be introduced for cancer patients " Robert A Bradway, chairman and CEO of Amgen, commented: "the strategic cooperation with Baiji Shenzhou will enable Amgen to expand its influence in the world's most populous countries and serve more patients We have chosen an innovative strategic partner based on their business operation and clinical development coverage in China and in accordance with international quality standards Cancer is the biggest cause of death in China With the aging of Chinese population, it will inevitably become a more urgent public health problem We look forward to working with Baiji to bring meaningful changes to the lives of millions of cancer patients in China and around the world " The key contents of this cooperation include: (1) the commercialization of approved products in China - according to the cooperation agreement, Baiji Shenzhou will carry out five or seven years of commercial operation on xgeva, kyprolis and blincyto in China; during the period, both parties will share the profits or losses equally After the commercialization period expires, Baiji Shenzhou will have the right to retain one product and obtain an additional five-year royalty for the sale of the unreserved product in China ——Xgeva desumab injection was approved in China in 2019 for the treatment of giant cell tumor of bone At present, it is developing for the prevention of bone related complications of cancer patients with bone metastasis In China, kyprolis is used to treat multiple myeloma patients, and blincyto is used to treat relapsed or refractory adult acute lymphoblastic leukemia patients At present, it is in the late stage of development (2) Global clinical development: Baiji Shenzhou agreed to jointly develop 20 anti-tumor pipeline drugs for solid tumors and hematoma, including AMG 510, the first in class and the first in research of KRAS G12C inhibitor, and the bispecific T cell binding antibody (bite ®) immunotherapy ——Amgen and Baiji Shenzhou will jointly bear the global development costs, of which Baiji Shenzhou will contribute a total value of up to US $1.25 billion including development services and cash during the cooperation period Baiji Shenzhou is entitled to receive royalties for each product (excluding AMG 510) sold worldwide outside China ——For each pipeline drug approved in China, Baiji Shenzhou will obtain its commercial right for up to seven years after approval; during this period, both parties will share the profits or losses equally At the end of the seven-year commercialization period, Baiji Shenzhou is entitled to a five-year royalty in China ——Baekje reserves the right to retain approximately one out of every three approved pipeline drugs, up to a total of six (excluding AMG 510), for commercialization in China, during which both parties will share the profits and losses Amgen has agreed to purchase about $2.7 billion worth of ordinary shares of Baiji Shenzhou at a price of $174.85 per share, 36% higher than the 30 day trading volume weighted average price of Baiji Shenzhou on the Nasdaq stock market as of October 30, 2019 Amgen will get a seat on the board of directors of Baiji Shenzhou The transaction has been approved by the board of directors of both companies, and is expected to be completed in the first quarter of 2020 if the following conditions are met: baichi Shenzhou obtains the approval of the majority shareholders in accordance with the listing provisions of the stock exchange of Hong Kong, the expiration or termination of the waiting period in accordance with the applicable anti-monopoly law, and other specific transaction conditions are met Baiji Shenzhou has received a commitment from shareholders holding about 40% of the issued shares to vote in favor of the transaction Morgan Stanley (46.05, - 0.21, - 0.45%) is the financial advisor of Baiji Mintz Levin acted as the legal counsel for the cooperation agreement; Goodwin international acted as the legal counsel for the share purchase agreement of Baiji Shenzhou; Skadden international acted as the legal counsel for related affairs of the Hong Kong stock exchange of Baiji Shenzhou Original source: Baiji Shenzhou