We selectively seek strategic alliances that enable us to maintain financial and operational flexibility while retaining significant clinical development, and operational involvement and the commercial rights to our drug candidates. We very much believe in the value of such partnerships, but importantly, with the right deal architecture that preserves for Cytokinetics key rights and participation. We are currently engaged in a major partnership with Amgen in the area of cardiac contractility for the potential treatment of heart failure. In addition, we actively seek strategic alliances for our unpartnered programs in pre-clinical and clinical development as well as academic collaborations with leading investigators in related fields.
In December 2006, we entered into a strategic alliance with Amgen to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. In May 2009, Amgen exercised an option to participate in future development and commercialization of Cytokinetics' lead drug candidate arising from this program, omecamtiv mecarbil, which had then completed two Phase IIa and five Phase I clinical trials. Amgen's exercise triggered a non-refundable exercise fee; moving forward, Amgen is responsible for development and commercialization of omecamtiv mecarbil and related compounds, at its expense, subject to Cytokinetics’ development and commercial participation rights. The collaboration is worldwide, excluding Japan.
In addition, Cytokinetics may be eligible to receive pre-commercialization and commercialization milestone payments on omecamtiv mecarbil and other products arising from the research as well as escalating royalties. Cytokinetics also has the opportunity to earn increased royalties by participating in Phase III development costs. In that case, Cytokinetics could co-promote resulting products in North America and would be expected to play a significant role in the agreed commercial activities in institutional care settings.
For more information about this alliance, please read the January, 2007 Press Release and the May 2009 Press Release.
