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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (1663)	6/30/2003 7:50:25 PM
From: Icebrg	Read Replies (1) \| Respond to of 3044

J&J agrees $750m deal to market drug By Victoria Griffith in Boston Published: June 30 2003 23:25 \| Last Updated: June 30 2003 23:25 Johnson & Johnson will pay up to $750m to Millennium Pharmaceuticals to market the Boston-based biotechnology company's new cancer drug Velcade outside the US, the groups said on Monday. "Velcade will become the centrepiece for J&J's oncology programme," said Anna Protopapas, vice-president of business development for Millennium. Besides the $750m in milestone payments set out in the deal, J&J - through its biotechnology arm Ortho Biotech Products - will pay double-digit royalties (the price number was not specified) for non-US sales. While Ortho Biotech's commitment is potentially large, the bulk of the payments are dependent on Velcade reaching specific development and sales mile- stones. The US Food and Drug Administration (FDA) approved Velcade in March for the treatment of the blood cancer multiple myeloma. But the drug may be effective in other cancers as well. Last month, the company revealed clinical data showing Velcade shrinks solid tumours, and showed biological activity in non-Hodgkin's lymphoma. Millennium hopes to gain European approval for Velcade as early as this year. Millennium and J&J have promised to spend $500m over the next few years to gain clearance for Velcade for other types of cancer. J&J has agreed to foot between 40 and 45 per cent of that bill. Millennium has retained all rights on US sales. J&J, which also makes and sells consumer products, is deepening its commitment to the pharmaceuticals side of its business. Earlier this year, FDA gave J&J the green light for a drug-coated stent worth $3bn in annual sales in the US alone. The stent - a medical device that holds open arteries to improve blood flow in heart patients - works to block scar tissue from forming. Millennium, one of the first genomics companies to attempt to make the transition to drug discovery, was a Wall Street darling at the height of the biotechnology boom two years ago. From a high of about $90 per share, however, the stock fell hard. The stock lost nearly 93 per cent of its value before it began to recover this year on Velcade news. Millennium closed on Monday at just under $16 per share; the announcement of the J&J deal was made after market close. news.ft.com