Amgen has entered into a definitive agreement to acquire BioVex Group, Inc., a privately held biotechnology company headquartered in Woburn, MA. BioVex is developing OncoVEX(GM-CSF), a novel oncolytic vaccine in Phase III development for the potential treatment of melanoma and head and neck cancer. BioVex will become a wholly owned subsidiary of Amgen. Amgen will pay as much as $1 billion, which includes $425 million in cash at closing and as much as $575 million in additional regulatory and sales milestones. The transaction, subject to customary closing conditions, is expected to close in 1Q11.

“OncoVex has demonstrated encouraging anti-tumor activity in clinical studies for the treatment of melanoma and head and neck cancer, and BioVex is currently enrolling patients into pivotal Phase 3 trials in both indications,” said Roger M. Perlmutter, M.D., Ph.D., Amgen’s executive vice president, R&D. “Amgen is particularly excited about joining with BioVex and its talented staff to focus on advancing this late-stage investigational therapy, with the hope of bringing it to market within the next few years.”

“Amgen is ideally positioned to leverage the potential of OncoVEX in multiple solid tumor indications given their impressive oncology franchise and expertise in biologics manufacturing and development,” said Philip Astley-Sparke, chief executive officer of BioVex. “We have a shared vision and commitment to bring novel therapeutics to market and we are looking forward to being able to combine our efforts towards this common goal.”