Amgen 2010 Annual Report Download - page 44

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% royalty on
net sales of PROCRIT»by J&J in the United States.
Outside the United States, with the exception of China and Japan, J&J was granted rights to manufacture and
commercialize recombinant human erythropoietin as a human therapeutic for all uses under a licensing agreement
with KA. With respect to its sales outside of the United States, J&J manufactures and commercializes its own brand
of Epoetin alfa which is then sold by a subsidiary of J&J under various trademarks such as EPREX»and ERYPO».
We are not involved in the manufacture of Epoetin alfa sold by J&J outside of the United States.
Pfizer Inc.
Amgen and Pfizer are in a collaboration agreement to co-promote ENBREL in the United States and Canada.
The rights to market ENBREL outside of the United States and Canada are reserved to Pfizer. Under the agreement,
a management committee comprised of equal representation from Amgen and Pfizer is responsible for overseeing
the marketing and sales of ENBREL, including strategic planning, the approval of an annual marketing plan,
product pricing and the establishment of a brand team. The brand team, with equal representation from each party,
prepares and implements the annual marketing plan, which requires a minimum level of financial and sales
personnel commitment from each party, and is responsible for all sales activities. Further, pursuant to the
collaboration agreement, Amgen and Pfizer share in the agreed-upon selling and marketing expenses approved
by the joint management committee. We currently pay Pfizer a percentage of the annual gross profits on our
ENBREL sales in the United States and Canada attributable to all approved indications for ENBREL on a scale that
increases as gross profits increase; however, we maintain a majority share of ENBREL profits. After expiration of
the collaboration agreement in the fourth quarter of 2013, we are required to pay Pfizer a percentage of net
ENBREL sales in the United States and Canada for three years. The annual amount of such payments is anticipated
to be significantly less than the current ENBREL profit share.
Glaxo Group Limited
In July 2009, we entered into a collaboration agreement with Glaxo for the commercialization of denosumab
for osteoporosis indications in Europe, Australia, New Zealand and Mexico (the “Primary Territories”). We retained
the rights to commercialize denosumab for all indications in the United States and Canada and for oncology
indications in the Primary Territories. Under a related agreement, Glaxo will commercialize denosumab for all
indications in countries, excluding Japan, where we do not currently have a commercial presence, including China,
Brazil, India, Taiwan and South Korea (the “Expansion Territories”). In the Expansion Territories, Glaxo will be
responsible for all development and commercialization costs and will purchase denosumab from us to meet
demand. We have the option of expanding our role in the future in the commercialization of denosumab in the
Primary Territories and certain of the Expansion Territories. In the Primary Territories, we share equally in the
commercialization profits and losses related to the collaboration after accounting for expenses, including an amount
payable to us in recognition of our discovery and development of denosumab. Glaxo will also be responsible for
bearing a portion of the cost of certain specified development activities in the Primary Territories.
Takeda Pharmaceutical Company Limited
In February 2008, we entered into a collaboration agreement with Takeda, which provides Takeda the
exclusive rights to develop and commercialize for the Japanese market up to 12 clinical stage molecules from our
pipeline across a range of therapeutic areas, including oncology and inflammation. The products include Vectibix»
which received regulatory approval in Japan in 2010 for unresectable, advanced or recurrent colorectal cancer with
wild-type KRAS, AMG 386, which is in a phase 3 trial in the United States for recurrent ovarian cancer, and
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