Crenezumab Collaboration Agreement of 2006
We signed our first agreement with Genentech
in November 2006 and amended the agreement in May 2015. This is an exclusive, worldwide licensing agreement for crenezumab, our
humanized monoclonal antibody targeting misfolded Abeta. The agreement provides for a second therapeutic product based on the same
intellectual property and anti-Abeta antibody compound, as well as an anti-Abeta diagnostic product. Genentech commenced Phase
3 clinical studies for crenezumab in the first quarter of 2016 and the first quarter of 2017.
Under the agreement with Genentech, we
may become eligible to receive payments totaling up to approximately USD 340 (CHF 339) million, excluding royalties. The agreement
includes upfront and milestone payments. In addition, we may receive royalties on sales. The structure of the collaboration agreement
is as follows:
||A right-to-use license;|
||Clinical milestone payments are payable upon commencement of each of Phase 1 and Phase 2 of clinical developments, and upon the earlier of Genentech’s decision to authorize Phase 3 or the commencement of Phase 3 of clinical developments. In addition, for a second indication, clinical milestone payments would be payable upon commencement of Phase 2 of clinical developments and upon the earlier of Genentech’s decision to authorize Phase 3 or the commencement of Phase 3 of clinical developments;|
||Regulatory milestone payments upon making regulatory filings in the U.S. and Europe, respectively, and milestone payments upon obtaining marketing approval in each of the U.S. and Europe. In addition, for a second indication, additional regulatory and approval milestones would be payable.|
||Royalties on sales with different royalty rates applicable in the U.S. and Europe. Royalty levels are tied to annual sales volumes. We may receive royalties on sales of crenezumab with the percentage rates ranging from net high single digits to the mid-teens.|
To date, we have received total payments
of USD 65 million (CHF 70.1 million) which comprise upfront and clinical milestone payments. We received a USD 25 million upfront
payment at the time of signing of the collaboration agreement and have since then obtained three milestone payments totaling USD
40 million, including the Phase 3 milestone payment we received in July 2015.
Under the terms of the agreement, Genentech
bears all the costs of developing crenezumab through the clinical phases. In addition, Genentech is responsible for the costs associated
with seeking and obtaining regulatory and marketing approvals, manufacturing costs, sales and marketing costs. Intellectual property
costs related to any crenezumab-related intellectual property filed solely by us and any costs associated with filing, maintaining
and protecting intellectual property filed jointly we share with Genentech. The agreement will terminate by its terms on the date
on which all obligations between the parties with respect to the payment of milestones or royalties for licensed products have
passed or expired. However, Genentech may terminate the agreement at any time by providing three months’ notice to us.
On January 30, 2019, we announced that
Roche, the parent company of our collaboration partner, is discontinuing the CREAD 1 and CREAD 2 (BN29552 and BN29553) Phase III
studies of crenezumab, in people with prodromal to mild sporadic Alzheimer’s disease (AD). The Phase 2 development of crenezumab
continues in a preventive trial of cognitively healthy individuals in Colombia with a risk of developing AD.
Anti-Tau Antibody Collaboration Agreement of 2012
In June 2012, we entered into a second
partnership with Genentech to commercialize anti-Tau antibodies for use as immunotherapeutics. The value of this exclusive, worldwide
alliance is potentially greater than CHF 400 million and includes upfront and milestone payments. In addition to milestones,
we will be eligible to receive royalties on sales at percentage rates ranging from the mid-single digits to high single digits.
The agreement also provides for collaboration on two additional indications built on the same anti-Tau antibody program, as well
as a potential anti-Tau diagnostic product.