AstraZeneca and Bristol-Myers Squibb Diabetes Collaboration

On January 11, 2007 AstraZeneca and BMS announced a Worldwide Collaboration To Develop And Commercialise Diabetes Compounds.

You have to admire not just the size and structure, but the fact that two big pharmas were willing to overcome the usual prejudices and make a deal with each other:

• two BMS compounds for the treatment of Type 2 diabetes, one in Phase III development and the other in Phase IIb
• worldwide, except for Japan
• should either party develop additional DPP-4 or SGLT2 compounds, the other company can elect to add those compounds to the collaboration
• upfront payment of $100 million by AstraZeneca to BMS
• from 2007 through 2009, development costs will be funded by AstraZeneca, thereafter shared equally
• BMS may receive up to $650 million based on development and regulatory milestones for the two compounds
• sales milestones up to $300 million per product
• jointly develop the clinical and marketing strategy for the compounds
• post-launch will share commercialisation expenses and profits/losses equally on a global basis, excluding Japan
• BMS manufactures both products and book sales