Biogen and Alkermes have entered into a global license and collaboration agreement to develop and commercialize ALKS 8700, a novel, oral, monomethyl fumarate small drug molecule in Phase 3 development for the treatment of relapsing forms of multiple sclerosis.

Biogen will receive an exclusive, worldwide license to commercialize ALKS 8700 and will pay Alkermes a mid-teens royalty on worldwide net sales of the drug. Biogen will also reimburse Alkermes for fifty percent of the 2017 development costs, with Alkermes receiving an upfront payment of $28 million. Alkermes may also receive milestone payments with a maximum value of $200 million upon certain clinical and regulatory achievements. 

“This collaboration has the potential to provide important benefits to patients with multiple sclerosis and immediately increases the value of ALKS 8700 to Alkermes,” said Richard Pops, chief executive officer, Alkermes. “In Biogen’s hands, we believe that patients will have broader and more rapid access to this important medicine.”

Alkermes will continue to handle interactions with the U.S. Food and Drug Administration through the potential approval of the New Drug Application for ALKS 8700.