8-k filing
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant
Pursuant to a joint development and commercialization agreement between Abgenix, Inc. (the “Company”) and Immunex Corporation, a wholly-owned subsidiary of Amgen Inc. (collectively, “Amgen”), for the co-development of panitumumab, a fully human antibody created by the Company, Amgen is required to make available up to $60.0 million in advances that the Company may use to fund a portion of its share of development and commercialization costs for panitumumab. On February 14, 2005, the Company drew $14.2 million in advances pursuant to this credit facility in connection with the development activities of Amgen and the Company in the fourth quarter of 2004.
The Company may use the $60.0 million in advances made available by Amgen to fund a portion of its share of development and commercialization costs for panitumumab after the Company contributed $20.0 million toward development costs in 2004. The Company contributed in excess of $20.0 million in 2004. Interest accrues on advances at 12% per annum compounded annually. The amount of any such advances, plus interest, may be repaid out of profits resulting from future product sales; however, the Company is not obligated to repay any portion of the outstanding balance if panitumumab does not reach commercialization.
As of February 14, 2005, including the $14.2 million in advances in connection with fourth quarter of 2004, the Company has a carrying balance of $34.6 million under this facility consisting of $34.1 million in advances and $517,000 of interest. |
