20% Royalty not enough, Amgen wants complete removal

[anonymous]

If Amgen does not get Dupi and Sarilumab, they will let 12-18 month appeal process happen. If it's upheld, Regeneron will have to pay Amgen for those 12-18 months and then face removal. Amgen has publically stated:

"Amgen has the ability to supply all potential Repatha patients and will work to ensure a smooth transition for patients who wish to switch to Repatha."

When Amgen wins, they will be able to block praluent from the market for an additional 10.5 to 11 years.

A 20% royalty is not enough because, with 2 products on market - the price competition alone results in a 20% pricing cut. If Amgen gets complete injunction, that's 50% more share and they can raise prices by more 20% until another PCSK9 comes to market. Amgen's past suggest they will not settle, ask Roche as they were barred from the market 5 years with a biosimilar epogen. Amgen's legacy works because they had products with no competition.

Regeneron basically has to hope they can overturn the injunction and the precedence of infringement is against them.

 

[anonymous]

If Amgen does not get Dupi and Sarilumab, they will let 12-18 month appeal process happen. If it's upheld, Regeneron will have to pay Amgen for those 12-18 months and then face removal. Amgen has publically stated:

"Amgen has the ability to supply all potential Repatha patients and will work to ensure a smooth transition for patients who wish to switch to Repatha."

When Amgen wins, they will be able to block praluent from the market for an additional 10.5 to 11 years.

A 20% royalty is not enough because, with 2 products on market - the price competition alone results in a 20% pricing cut. If Amgen gets complete injunction, that's 50% more share and they can raise prices by more 20% until another PCSK9 comes to market. Amgen's past suggest they will not settle, ask Roche as they were barred from the market 5 years with a biosimilar epogen. Amgen's legacy works because they had products with no competition.

Regeneron basically has to hope they can overturn the injunction and the precedence of infringement is against them.

Amgen IS ruthless!

 

[anonymous]

Amgen IS ruthless!

http://investors.amgen.com/phoenix.zhtml?c=61656&p=irol-newsArticle&ID=2234588

Court Grants Permanent Injunction For Infringement Of Amgen's Repatha® Patents
THOUSAND OAKS, Calif., Jan. 5, 2017 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced that the United States District Court in Delaware granted Amgen's request for a permanent injunction prohibiting Sanofi and Regeneron from infringing two patents that Amgen holds for Repatha® (evolocumab) by manufacturing, using, selling or offering alirocumab for sale in the United States. The injunction will not take effect immediately as the court has delayed its imposition for 30 days to allow defendants the opportunity to seek expedited review of this decision. The judge's decision follows a jury verdict in March 2016 in Amgen's favor in a trial on the validity of two Amgen patents that describe and claim monoclonal antibodies to proprotein convertase subtilisin/kexin type 9 (PCSK9).

"We are pleased with today's decision that recognizes Amgen is entitled to an injunction against further infringement of our patent rights. Sanofi and Regeneron admitted that they had infringed our patents, and the jury upheld our patents as valid. Protecting intellectual property is essential to our industry as it reinforces the incentives for the large and risky investments we make in innovation to bring forward new medicines to treat serious diseases," said Robert A. Bradway, chairman and chief executive officer at Amgen. Bradway continued, "Heart disease is the biggest health care challenge for society today and Repatha aims to help address this challenge by providing a profound reduction in LDL-cholesterol."

Amgen has the ability to supply all potential Repatha patients and will work to ensure a smooth transition for patients who wish to switch to Repatha.


No royalty. That's out the window now. Amgen is going to get Praluent removed and will switch patients. They want monopoly so they can price higher and get all the patients. A monopoly is 100% royalty plus without rebates for net to gross it's like 130% royalty that goes up because now they can increase the price each year. When a competitor gets on market, they will have higher share and better contracting game as well.