Human Genome Sciences today announced that it will receive a $40 million payment from Novartis in September 2007 for the previously reported successful completion of a Phase 2b trial of Albuferon(R) (albinterferon alfa-2b) in treatment-naive patients with chronic hepatitis C.
“This $40 million payment will bring the total milestone payments received from Novartis under our Albuferon co-development and commercialization agreement to $132.5 million,” said H. Thomas Watkins, President and Chief Executive Officer, HGS. “Novartis and HGS are also sharing clinical development costs equally. From a strategic perspective, our collaboration with Novartis is proceeding very well. Our companies are jointly committed to the highest quality of clinical development, and we are working closely together to bring Albuferon to market as rapidly as possible.”
Under a co-development and commercialization agreement entered into in June 2006, HGS and Novartis will co-commercialize Albuferon in the United States and will share clinical development costs, U.S. commercialization costs and U.S. profits equally. Novartis will be responsible for commercialization in the rest of the world and will pay HGS a royalty on those sales. Clinical development, commercial milestone and other payments to HGS could total as much as $507.5 million, including $92.5 million received to date and the $40 million payment expected in September 2007.No tag for this post.