"One of our key goals here is to really augment work we'vealready been doing as we risk-mitigate around the compound currently in clinicaltrials," he adds.
Joint research activities will focus on identifying andcharacterizing activators of cardiac myosin as potential backup and follow-ondrug candidates to CK-1827452. During the initial two year research term,Cytokinetics will continue to shoulder the cost of research, as well as fundingall development activities for CK-1827452. However, if CK-1827452 meets pre-defined criteria in Phase 2aclinical trials, Amgen could exercise an option to pay a non-refundableexercise fee of $50 million. Upon so doing, Amgen would thereafter beresponsible for development and commercialization of CK-1827452 and relatedcompounds, at its expense, subject to development and commercial participationrights of Cytokinetics.
In addition, Cytokinetics is potentially eligible for pre-commercializationand commercialization milestone payments of as much as $600 million onCK-1827452 and other products arising from the research, in addition toroyalties. "Both companies have built their business onfirst-in-class mechanism new drugs," Blum notes, saying that the deal only cametogether after several years of discussions between the two companies. "Neithercompany has been working in areas that have been competitive with each other orwhere we are a fast-follower. With both our companies, we're known forpioneering new mechanisms for compounds, so we're very aligned philosophicallyin terms of taking risks and realizing that rewards of that risk."
