Bristol-Myers Squibb will pay Otsuka an up-front cash payment of $400 million. Beginning on January 1, 2010, the share of ABILIFY U.S. net sales Bristol-Myers Squibb will receive will change from 65% to 58% for 2010; 53.5% for 2011; 51.5% for 2012.
During this period Otsuka will be responsible for 30% of expenses related to the commercialization of ABILIFY compared to having no responsibility under the existing collaboration agreement.
Beginning January 1, 2013, and through the expected loss of U.S. exclusivity in 2015, Bristol-Myers Squibb will receive 50% of net sales up to $2.7 billion and a declining tiered share of net sales above $2.7 billion. Otsuka will be responsible for 50% of commercialization expenses during this period. Beginning in 2010, Bristol-Myers Squibb and Otsuka will collaborate on two oncology assets SPRYCEL and IXEMPRA as follows: Otsuka will share in commercial expenses for the U.S., Europe and Japan and co-promote SPRYCEL with Bristol-Myers Squibb in the U.S., Japan and major EU markets; Bristol-Myers Squibb will pay Otsuka a collaboration fee on aggregate annual net sales of SPRYCEL and IXEMPRA beginning in 2010 on a regressive tiering basis through 2020.