United States-based Amgen has signed a strategic collaboration with China-based BeiGene that is intended to enhance Amgen's plans to expand its oncology presence in China.

It was reported yesterday that under this collaboration, Amgen will acquire a 20.5% stake in BeiGene for around USD2.7bn in cash. BeiGene will commercialise XGEVA (denosumab), KYPROLIS (carfilzomib) and BLINCYTO (blinatumomab) in China, during which time the parties will equally share profits and losses. Both firms will collaborate to advance 20 medicines from Amgen's innovative oncology range in China and globally. BeiGene will share global research and development costs and contribute up to USD1.25bn to advance these medicines.

Amgen will pay royalties to BeiGene on the sales of these products outside China, with the exception of AMG 510, Amgen's first-in-class KRASG12C inhibitor that is being studied as a potential treatment for solid tumours. Amgen anticipates utilising data from clinical trials conducted in China to advance the development of its oncology portfolio globally. Of the 20 oncology medicines in development, BeiGene will assume commercial rights in China for seven years after launch for those that receive approval in China, including AMG 510. Amgen will continue to commercialise its non-oncology product portfolio in China. XGEVA, KYPROLIS and BLINCYTO, and the medicines in Amgen's oncology pipeline, will be produced at Amgen's present facilities.

The exclusive financial advisor for the deal is Goldman Sachs & Co LLC and Latham & Watkins LLP is serving as legal advisor to Amgen.