Amgen 2015 Annual Report Download - page 28

20
Pfizer Inc.
The co-promotion term of our ENBREL collaboration agreement with Pfizer in the United States and Canada expired on
October 31, 2013, giving us full ownership of ENBREL promotional rights in the United States and Canada while the rights to
market ENBREL outside the United States and Canada are reserved to Pfizer. Under the collaboration agreement, Amgen and
Pfizer shared in the agreed-upon selling and marketing expenses approved by a joint committee. We paid Pfizer a percentage of
annual gross profits on our ENBREL sales in the United States and Canada on a scale that increased with gross profits; however,
we maintained a majority share of ENBREL profits. In 2016, we are required to pay Pfizer residual royalties of 10% of annual
net ENBREL sales in the United States and Canada. The amounts of such payments are significantly less than what was owed
based on the terms of the previous ENBREL profit share. Effective November 1, 2016, there will be no further royalty payments.
Bayer HealthCare Pharmaceuticals Inc.
As a result of our acquisition of Onyx Pharmaceuticals, Inc. (Onyx), we are party to a collaboration with Bayer HealthCare
Pharmaceuticals Inc. (Bayer) to jointly develop and commercialize Nexavar® (sorafenib) worldwide, except in Japan. The rights
to develop and market Nexavar® in Japan are reserved to Bayer.
In May 2015, we and Bayer amended the terms of the collaboration, which terminated the co-promotion agreement in the
United States, and transferred all U.S. operational responsibilities to Bayer, including commercial and medical affairs activities.
Prior to the termination of the co-promotion agreement, we co-promoted Nexavar® with Bayer and shared equally in the profits
in the United States. In lieu of this profit share, Bayer now pays us a royalty on U.S. sales of Nexavar® at a percentage rate in the
high 30s. Outside of the United States, excluding Japan, Bayer manages all commercialization activities and incurs all of the sales
and marketing expenditures and mutually agreed R&D expenses, and we reimburse Bayer for half of those expenditures. In all
countries outside of the United States, except Japan, we receive 50% of net profits on sales of Nexavar® after deducting certain
Bayer-related costs.
UCB
We are in a collaboration with UCB for the development and commercialization of romosozumab. Under the agreement, we
received the rights to commercialize romosozumab for all indications in the United States, Canada, Mexico and Japan. UCB has
the rights for all EU members at the time of first regulatory approval, Australia and New Zealand. Prior to commercialization,
countries that have not been initially designated will be designated to Amgen or UCB in accordance with the terms of the agreement.
Generally, development costs are shared equally and we will share equally in the worldwide commercialization profits and
losses related to the collaboration after accounting for expenses.
DaVita Inc.
We are in a seven-year supply agreement with DaVita that commenced January 1, 2012. Pursuant to this agreement, we will
supply EPOGEN® in amounts necessary to meet no less than 90% of DaVita’s and its affiliates’ requirements for ESAs used in
providing dialysis services in the United States and Puerto Rico. The agreement may be terminated by either party before expiration
of its term in the event of certain breaches of the agreement by the other party.
Human Resources
As of December 31, 2015, Amgen had approximately 17,900 staff members. We consider our staff relations to be good.