25
drugs developedunder this collaboration. If othermodalities, such as smallmolecules ormonoclonal antibodies are chosen, we are
eligible to receive up to$90million in substantivemilestone payments, includingup to$35million for the achievement of research
anddevelopmentmilestones andup to$55million for the achievement of regulatorymilestones. Biogen Idecwill be responsible for
all of the drugdiscovery anddevelopment activities for drugs usingothermodalities. In addition, we are eligible to receive single-
digit royalties on anyproduct sales of anydrugs usingothermodalities developedunder this collaboration. We could earn the next
milestone payment of up to$10million ifwe choose a target to advance under this collaboration.
During2013 and2012, we earned revenue of $37.0million and$8.5million, respectively, fromour relationshipswith
Biogen Idec, which represented25percent and eight percent, respectively, of our total revenue for those periods.
Bristol-Myers Squibb
InMay2007, we entered into a collaboration agreementwithBristol-Myers Squibb todiscover, develop and commercialize
novel antisense drugs targetingproprotein convertase subtilisin/kexin type 9, or PCSK9. In addition to a $15million upfront fee, we
earned$8million inmilestone payments related to the development ofBMS-PCSK9
Rx
. The collaboration ended inDecember 2011,
andwe regained the rights todiscover anddevelop antisense drugs to target PCSK9. During2013, 2012 and2011, we earned revenue
of $188,000, $290,000 and$2.4million, respectively, fromBristol-Myers Squibb.
Eli Lilly andCompany
InAugust 2001, we formed a broad strategic relationshipwithEli Lilly andCompany, which included a joint research
collaboration. As part of the collaboration, Eli Lilly andCompany licensedLY2181308, an antisense inhibitor of survivin, and
LY2275796, an antisense inhibitor of eIF-4E. In2012, Eli Lilly andCompanydecidednot to continue the development of
LY2181308. Therefore, wewill not earn futuremilestone payments fromEli Lilly andCompany associatedwithLY2181308.
InDecember 2009, we reacquiredLY2275796, whichwe renamed ISIS-EIF4E
Rx
, andwe are continuing to develop the drug.
Eli Lilly andCompanyhas the right to reacquire ISIS-EIF4E
Rx
onpredefined terms prior to the initiationof Phase 3development.
However, ifwe publicly disclose the results from a Phase 2 clinical studyof ISIS-EIF4E
Rx
:
Eli Lilly andCompanymay license ISIS-EIF4E
Rx
on the predefined terms;
Eli Lilly andCompanymay tell us it is not interested in licensing ISIS-EIF4E
Rx
, inwhich casewemay license ISIS-
EIF4E
Rx
to another partner; or
Eli Lilly andCompanymay offer to license ISIS-EIF4E
Rx
on terms that are lower than the predefined terms, inwhich
casewemay license ISIS-EIF4E
Rx
to another partner so long as the licensing termswe reachwith the newpartner are
better than terms offeredbyEli Lilly andCompany andwe have not publiclydisclosed any results from a new clinical
studyof ISIS-EIF4E
Rx
prior to reaching the agreement with the newpartner.
During2013, 2012 and2011, we didnot earn any revenue fromour relationshipwithEli Lilly andCompany.
GenzymeCorporation, aSanofi company
In January2008, we entered into a strategic alliancewithGenzyme focusedon the licensing and co-development of
KYNAMRO. The license and co-development agreement providesGenzymewith exclusiveworldwide rights for all therapeutic
purposes toour patents andknow-how related toKYNAMRO, including the keyproduct relatedpatents described in the “Patents and
ProprietaryRights” sectionunder “ApoB100 andKYNAMRO” onpage 37of this report, and their foreign equivalents pendingor
granted invarious countries outside theUnitedStates, including in theEuropeanUnionvia theEuropeanPatent Convention, Japan,
Canada, Australia, SouthAfrica and India. In addition, we agreed thatwewouldnot developor commercialize another
oligonucleotide-based compounddesigned tomodulate apo-Bbybinding to themRNA encoding apo-B, throughout theworld.
The transaction included a $175million licensing fee, a $150million equity investment inour stock inwhichwe issued
Genzyme fivemillion shares of our common stock, and a share ofworldwide profits onKYNAMRO and follow-ondrugs ranging
from30percent to 50percent of all commercial sales. There aremonthly limits on the number of shares of our stock thatGenzyme
can sell. In January2013we earned a $25millionmilestone paymentwhen the FDA approved theNewDrugApplication, orNDA,
forKYNAMRO.Wemay also receive over $1.5 billion in substantivemilestone payments ifGenzyme achieves pre-specified events,
includingup to$700million for the achievement of regulatorymilestones andup to$825million for the achievement of
commercializationmilestones. The nextmilestone paymentwe could earnunder our agreementwithGenzyme is $25million upon
the earlier of anNDA approval for the use ofKYNAMRO to treat patientswhohave heterozygous FHor annual net revenue equal to
or greater than$250million in a calendar year.
