UPDATE 1-Roche, Biogen end dispute over Rituxan follow-ons

* Genentech to fund development of ocrelizumab

* Biogen entitled to royalties on ocrelizumab

LOS ANGELES, Oct 21 (BestGrowthStock) – Biogen Idec Inc (BIIB.O: )
and Roche Holding AG’s (ROG.VX: ) Genentech unit agreed to amend
the terms of their collaboration to develop antibody drugs,
ending a long-term dispute.

Under the agreement, Genentech will be responsible for
further development and commercialization of ocrelizumab in
multiple sclerosis. Biogen will receive tiered, double-digit
royalties on future U.S. sales of the experimental drug that
will be close to its 30 percent interest in the compound.

The companies said the new terms do not affect their profit
split for Rituxan, the big-selling drug used to treat
non-Hodgkin’s lymphoma (NHL) and rheumatoid arthritis.

They also said Biogen will increase its share of the U.S.
losses and profits related to development and commercialization
of GA101 — a third antibody — to 35 percent from 30 percent.
GA101 is being studied as a treatment for NHL and chronic
lymphocytic leukemia.

Biogen will pay Genentech around $10 million as a catch-up
payment for expenses incurred to date on GA101.

Once GA101 achieves sales milestones, Biogen’s share of
Rituxan profits will drop to 35 percent from 40 percent.

The companies earlier this year ended development of
ocrelizumab as a treatment for rheumatoid arthritis after the
deaths of some clinical trial patients were linked to the
drug.

An arbitrator ruled last year that Genentech must suspend
certain trials until getting the go-ahead from Biogen, which
had argued that Genentech couldn’t develop follow-on drugs to
Rituxan without its approval.
(Reporting by Deena Beasley. Editing by John Wallace and
Robert MacMillan)

UPDATE 1-Roche, Biogen end dispute over Rituxan follow-ons