Merck 2014 Annual Report Download - page 185

180 CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
Agreement with Eli Lilly and Company, USA, and Bristol-
Myers Squibb Company, USA, on the co-commercialization
of Erbitux® in Japan
In October 2007, the Biopharmaceuticals division entered into an
agreement with ImClone Systems Inc., USA (which has now
merged into Eli Lilly and Company, USA) and Bristol-Myers
Squibb Company, USA (BMS) on the co-development and co-
commercialization of Erbitux® (cetuximab), a drug indicated for the
treatment of metastatic colorectal cancer, as well as for other can-
cers, in Japan. Pursuant to the agreement, the Biopharmaceuticals
division distributes the product and books the sales for the collab-
oration. The Group receives 50 % of the profit or loss from sales of
Erbitux® in Japan, while Eli Lilly and BMS each receive 25 %. In
addition, Eli Lilly receives a royalty equal to 4.75 % of total net
sales of Erbitux® in Japan from the Group. The Group records the
assets, liabilities, revenues and expenses related to the agreement
in accordance with the respectively valid IFRS. In 2014, the Group
received sales of €113.2 million from the commercialization of
Erbitux® in Japan (2013: €115.1 million). On February 13, 2015,
Merck KGaA, Darmstadt, Germany, announced that full promo-
tional responsibiltiy for Erbitux® in Japan will be transferred to
the Group as of May 1, 2015.
Agreement with Bristol-Myers Squibb Company, USA, for
the co-commercialization of Glucophage® in China
In March 2013, the Biopharmaceuticals division entered into an
agreement with Bristol-Myers Squibb, USA, on the co-commercial-
ization of the antidiabetic agent Glucophage® (active ingredient:
metformin hydrochloride) for the treatment of type 2 diabetes
in China. The Group records the assets, liabilities, revenues and
expenses related to the agreement in accordance with the respec-
tively valid IFRS . In 2014, the Group received commission income
of € 58.4 million for the co-commercialization of Glucophage®
(2013: €12.8 million).