Amgen 2009 Annual Report Download - page 36

Business Relationships
From time to time, we enter into business relationships including, joint ventures and collaborative arrange-
ments, for the R&D, manufacture and/or commercialization of products and product candidates. In addition, we
also acquire product rights and have established R&D collaborations with third-parties to enhance our R&D
capabilities and internally developed product pipeline. These arrangements may provide for non-refundable, up-
front license fees, R&D and commercial performance milestone payments, cost sharing, royalty payments and/or
profit sharing. Our collaboration agreements with third parties are performed on a “best efforts” basis with no
guarantee of either technological or commercial success.
Trade secret protection for our unpatented confidential and proprietary information is important to us. To
protect our trade secrets, we generally require parties to business relationships to execute confidentiality agree-
ments upon the commencement of the business relationship with us. However, others could either develop
independently the same or similar information or obtain access to our information.
Kirin Holdings Company, Limited
We formed KA, a 50-50 joint venture with Kirin in 1984. KA develops and commercializes certain of our
and Kirin’s product rights, which have been transferred to this joint venture. KA has given exclusive licenses to
us to manufacture and market: (i) darbepoetin alfa in the United States, Europe, Canada, Australia, New Zealand,
Mexico, all Central and South American countries and certain countries in Central Asia, Africa and the Middle
East, (ii) pegfilgrastim and G-CSF in the United States, Europe, Canada, Australia and New Zealand,
(iii) recombinant human erythropoietin in the United States and (iv) romiplostim in the United States, Europe,
Canada, Australia, New Zealand, Mexico, all Central and South American countries and certain Central Asian,
African and Middle East countries. We currently market darbepoetin alfa, pegfilgrastim, G-CSF, recombinant
human erythropoietin and romiplostim under the brand names Aranesp®, Neulasta®, NEUPOGEN®/
GRANULOKINE®, EPOGEN®and Nplate®, respectively.
KA has also given exclusive licenses to Kirin to manufacture and market: (i) darbepoetin alfa, pegfilgrastim,
G-CSF and romiplostim in Japan, the People’s Republic of China (“China”), Taiwan, Korea and certain other
countries in Asia, (ii) pegfilgrastim and G-CSF in Japan, China, Taiwan and Korea and (iii) recombinant human
erythropoietin in Japan and China. Kirin markets darbepoetin alfa in Japan under the brand name NESP®. Kirin
markets G-CSF and recombinant human erythropoietin in China under separate agreements with KA. Kirin mar-
kets its G-CSF product in its respective territories under the trademark GRAN®/Grasin®/Filgrastim®. Kirin
markets its recombinant human erythropoietin product in Japan under the trademark ESPO®. Kirin also markets
G-CSF and recombinant human erythropoietin in China under a separate agreement with Amgen Greater China
Ltd., a subsidiary of Amgen Inc.
KA has licensed to J&J rights to recombinant human erythropoietin in all geographic areas of the world out-
side the United States, China and Japan (see “— Johnson & Johnson”). Under its agreement with KA, J&J pays a
royalty to KA based on sales. KA has also licensed to Roche rights to pegfilgrastim and G-CSF in certain geo-
graphic areas of the world.
In connection with our various license agreements with KA, we pay KA royalties based on product sales. In
addition, we also receive payment from KA for conducting certain R&D activities on its behalf (see Note 8,
“Related party transactions” to the Consolidated Financial Statements).
Johnson & Johnson
We granted J&J a license to commercialize recombinant human erythropoietin as a human therapeutic in the
United States in all indications other than dialysis and diagnostics. All recombinant human erythropoietin sold by
J&J in the United States is manufactured by us and sold by J&J under the trademark PROCRIT®(Epoetin alfa).
PROCRIT®brand Epoetin alfa is identical to EPOGEN®brand Epoetin alfa, which is manufactured and sold by
us in the U.S. market for the dialysis indication. Pursuant to the license agreement with J&J, we earn a 10% roy-
alty on net sales of PROCRIT®by J&J in the United States.
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