Otsuka sells on Japanese saxagliptin rights to Kyowa Hakko

3 July 2012

Japanese drugmakers Otsuka Pharmaceutical (TYO: 4578) and Kyowa Hakko Kirin (TYO: 4151) have entered into an agreement to pursue a strategic alliance in the fields of diabetes and oncology.

As part of this collaboration, Kyowa Hakko will receive exclusive development and marketing rights in Japan to the diabetic agent saxagliptin), which are currently held by Otsuka under license from US drug major Bristol-Myers Squibb (NYSE: BMY). In return, Otsuka will receive 3.0 billion yen ($37.6 million) from Kyowa Hakko as the initial payment and 8.2 billion yen at the time of its approval in Japan. Furthermore, Otsuka will receive running royalties after the launch of saxagliptin in proportion to its revenue.

The Japanese clinical development program for saxagliptin, which is marketed by B-MS and AstraZeneca as Onglyza and Komboglyze, has been completed and a New Drug Application for the treatment of type 2 diabetes was filed with the Ministry of Health, Labor and Welfare in April 2012.

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