Amgen Forms Partnership to Develop Nerve Drugs

Amgen Inc., a Thousand Oaks biotechnology concern, said it entered into a multiyear pact with Regeneron Pharmaceuticals Inc. to develop certain proteins, called neurotropic factors, that might be developed into biotechnology drugs that could help treat various neurological disorders.

Under the deal, the companies will form a partnership to commercialize the factors, which might be used for treating Alzheimer’s and Parkinson’s diseases. Amgen also paid $15 million for convertible preferred stock of Regeneron, and it paid $1 million to Regeneron for signing a license agreement under which Amgen can commercialize the factors outside the United States, Japan and certain other Asian countries.

If the factors are sold commercially, Amgen would pay Regeneron a royalty on sales outside the United States, and both companies would share profits generated from U.S. sales.

Also, Amgen will fund $10 million for continued research and development over the next two years, and if certain goals are met, Amgen will commit an additional $27 million to the partnership and to Regeneron over the next several years.

Regeneron is a privately held biotechnology company based in Tarrytown, N.Y.