EXHIBIT 10.20
LICENSE AND COLLABORATION AGREEMENT
dated as of November 7, 2007
by
and between
Amicus Therapeutics, Inc.
and
Shire Pharmaceuticals Ireland Ltd.
[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
TABLE OF CONTENTS
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ARTICLE 1
DEFINITIONS
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ARTICLE 2
GRANT OF RIGHTS
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11 |
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2.1 Amicus
Grant
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11 |
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2.2
Sublicenses
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12 |
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2.3 Exchange of
Data and Know-How
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13 |
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2.4
[***]
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13 |
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2.5 No Implied
Licenses
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ARTICLE 3
GOVERNANCE
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3.1 Joint Steering
Committee
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3.2 Joint
Development Committee
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3.3 Joint
Commercialization Committee
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16 |
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3.4 Special
Committees and Sub-Committees; Financial Procedures
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16 |
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3.5 Committee
Membership, Decision-Making and Operations
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3.6 Alliance
Managers
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ARTICLE 4
DEVELOPMENT
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4.1 Overall
Efforts in Development
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4.2 Development
Plans
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4.3 Post-Marketing
Studies; Monitoring of Independent Trials
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21 |
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4.4
Subcontractors
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22 |
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4.5 Combination
Products
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4.6 Term of
Ongoing Development and Committee Obligations
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23 |
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ARTICLE 5
COMMERCIALIZATION in the Shire Territory
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5.1 General
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5.2
Diligence
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5.3 Territory
Compliance
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23 |
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5.4 Bundling
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ARTICLE 6
CERTAIN OTHER ACTIVITIES
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6.1 Label
Expansions and New Formulations within the Field
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6.2 [***]
for [***]’s
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28 |
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6.3 Related
Products
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30 |
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6.4 Termination by
JSC; Back-Up Compounds
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31 |
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6.5 Additional
Terms Regarding Related Product/Back-Up Compound Opt-In
Rights
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35 |
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6.6 Independent
Development and Commercialization of Related Products
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36 |
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6.7
Reservation
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[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-i-
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ARTICLE 7
PAYMENTS, ROYALTIES AND THE SHARING OF DEVELOPMENT COSTS
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37 |
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7.1 License
Fee
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37 |
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7.2 Milestone
Payments
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37 |
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7.3
Royalties
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39 |
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7.4 Development
Cost Sharing
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7.5 Payments under
Existing In-Licenses
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7.6 Other Payment
Terms
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7.7 Taxes
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7.8 Records
Retention; Audits
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ARTICLE 8
MANUFACTURING AND SUPPLY
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8.1 General
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8.2 Supply
Agreement
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8.3 Limitation;
Manufacturing by Shire
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ARTICLE 9
REGULATORY MATTERS
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9.1 Regulatory
Responsibilities
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9.2 Filings and
Meetings with Regulatory Authorities.
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9.3 Adverse Events
and Post-Market Surveillance
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9.4 Common
Registration Dossier
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9.5 Regulatory
Inspections
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9.6 Audit
Rights
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ARTICLE 10
INTELLECTUAL PROPERTY
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51 |
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10.1
Ownership
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10.2 Patent
Filing, Prosecution, and Maintenance
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10.3 Enforcement
Against Third Parties
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10.4 Defense of
Infringement Claims
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10.5 Patent
Marking
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10.6 License of
Third Party Rights.
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ARTICLE 11
TRADEMARKS AND COPYRIGHTS
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56 |
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11.1 Product
Marks
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ARTICLE 12
REPRESENTATIONS, WARRANTIES AND COVENANTS
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12.1 Mutual
Representations, Warranties and Covenants
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12.2 Amicus
Additional Representations, Warranties and Covenants
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12.3
Disclaimer
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ARTICLE 13
INDEMNIFICATION; INSURANCE
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13.1
Indemnification of Shire
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13.2
Indemnification of Amicus
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[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-ii-
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13.3
Procedure
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13.4
Insurance
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ARTICLE 14
CONFIDENTIALITY
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14.1
Confidentiality; Exceptions
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14.2 Authorized
Disclosure
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65 |
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14.3 Termination
of Prior Agreement
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14.4 Disclosure of
Terms
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66 |
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14.5
Publications
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66 |
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14.6 Press
Releases and Announcements
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66 |
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ARTICLE 15
TERM AND TERMINATION
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67 |
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15.1 Term
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15.2 Termination
for Breach
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67 |
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15.3 Termination
by Shire
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67 |
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15.4 Termination
for Bankruptcy
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68 |
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15.5 Effects of
Expiration or Termination
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15.6
Survival
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ARTICLE 16
GENERAL PROVISIONS
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16.1
Assignment
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16.2 Independent
Contractors
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16.3 Third Party
Beneficiaries
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73 |
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16.4 Waiver
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73 |
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16.5 Force
Majeure
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16.6
Severability
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73 |
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16.7 Governing
Law; Dispute Resolution
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73 |
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16.8 Arbitration
for Committee Disputes and Certain Other Disputes
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16.9
Construction
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75 |
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16.10
Notices
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75 |
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16.11
Amendment
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76 |
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16.12 Entire
Agreement
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76 |
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16.13 Execution in
Counterparts; Facsimile Signatures
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76 |
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16.14 Provisions
of Existing In-Licenses
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76 |
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[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-iii-
EXECUTION COPY
LICENSE AND COLLABORATION AGREEMENT
This License and Collaboration
Agreement (this “ Agreement ”) is made as
of November 7, 2007 (the “ Effective Date
”), by and between Amicus Therapeutics, Inc., a Delaware
corporation (“ Amicus ”), and Shire
Pharmaceuticals Ireland Ltd., a corporation organized under the
laws of Ireland (“ Shire ” and each of
Amicus and Shire, a “ Party ”).
BACKGROUND
A. Amicus has developed a
platform for the treatment of human genetic diseases comprising the
use of small molecule drugs, referred to as pharmacological
chaperones, which selectively bind to an active site of a target
protein, thereby enhancing the protein’s stability and
ability to fold into the correct three-dimensional shape, to
restore proper biological activity of the target protein. Amicus
currently is conducting human clinical trials on three products
containing such pharmacological chaperone compounds, which Amicus
refers to as Plicera™, Amigal™ and AT2220.
B. Shire is an established
pharmaceutical company which focuses its experience and expertise
in the development and commercialization of pharmaceutical products
in select areas, including among them, human genetic
disorders.
C. Shire desires to acquire
rights to the Licensed Products for commercialization outside the
United States, and to collaborate with Amicus in the further
Development of such Licensed Products, all on the terms and
conditions set forth below in this Agreement.
Now, therefore, in consideration of
the foregoing premises and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:
ARTICLE 1
DEFINITIONS
In addition to terms defined
elsewhere in this Agreement, the following terms shall have the
respective meanings set out below, and grammatical variations of
such terms shall have corresponding meanings.
1.1 “ Affiliate
” means, with respect to a Party, any person, corporation or
other entity which, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common
control with such Party, as the case may be. As used in this
Section 1.1, “control” shall mean: (a) direct
or indirect beneficial ownership of at least fifty percent (50%)
(or such lesser percentage which is the maximum allowed to be owned
by a foreign corporation in a particular jurisdiction) of the
voting stock or other ownership interest in such person,
corporation or other entity; or (b) to possess, directly or
indirectly, the power to affirmatively direct the management
and
[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
policies
of such person, corporation or other entity, whether through
ownership of voting stock or other ownership interest or by
contract relating to voting rights or corporate governance.
1.2 “ Amicus IP
” shall mean the Amicus Know-How and Amicus Patent Rights,
defined as follows:
1.2.1
“ Amicus Know-How ” means Know-How
Controlled by Amicus as of the Effective Date or during the Term,
and that is necessary, useful or actually used by Amicus to
Develop, Manufacture or Commercialize Licensed Products in the
Field.
1.2.2
“ Amicus Patent Rights ” means those
Patent Rights listed on Appendix 1 and any and all
other Patent Rights Controlled by Amicus during the Term that are
necessary, useful or actually practiced by Amicus, to Develop,
Manufacture or Commercialize a Licensed Product in the Field.
Appendix 1 shall be updated from time to time as
requested by either Party to reflect all additional Patent Rights
within the Amicus Patent Rights.
1.3 “
Commercialization ” or “
Commercialize ” means activities directed to
marketing, advertising, promoting, detailing, distributing,
importing or selling a product, including Post-Marketing Studies,
Manufacture of commercial supplies and education, planning, product
support and medical efforts related to a product. For clarity,
Manufacturing process development, scale-up and validation of
Manufacturing with respect to a Licensed Product prior to the first
Regulatory Approval in a Primary Market for such Licensed Product
(or in connection with establishing second source manufacturers or
manufacturing sites) shall not be deemed Commercialization and
shall instead be considered Development (unless and to the extent,
in the case of validation batches, such batches are used as
commercial supplies), while further process development, scale-up
and/or validation of Manufacturing after the first Regulatory
Approval in a Primary Market for such Licensed Product shall be
included within Commercialization.
1.4 “ Commercially
Reasonable Efforts ” means, with respect to a Party,
the efforts and resources which would be used by that Party
relating to a certain activity or activities, consistent with its
normal business practices for a product at a similar stage in its
development and of similar market potential in a field of the
biopharmaceutical industry of similar size as the Field that such
Party is seeking to Develop and Commercialize in a reasonably
expeditious manner.
1.5 “ Compound
” means the following chemical entities:
1.5.1
deoxygalactonojirimycin having the structure shown in
Exhibit 1.5.1 , and any [***] thereof (“
Deoxygalactonojirimycin ” or “
DGJ ”);
1.5.2
deoxynojirimycin having the structure shown in
Exhibit 1.5.2 , and any [***] thereof (“
Deoxynojirimycin ” or “ DNJ
”);
1.5.3
isofagomine having the structure shown in Exhibit 1.5.3
, and any enantiomers, [***] thereof (“
Isofagomine ” or “ [***]
”); and
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-2-
1.5.4
any other chemical entity that the Parties agree to add as a
Compound under Section 6.3 or 6.4.4 below. If the Parties
agree to add an additional Compound as described in this Section
1.5.4, the Parties shall attach to this Agreement an
Exhibit 1.5.x , describing the chemical structure of
such compound, it being understood that only the chemical entity so
described, plus enantiomers, metabolites, salts and polymorphs
thereof, shall be deemed so added as a Compound.
As used in this Agreement, any
reference to a Compound shall be deemed to include enantiomers,
metabolites, salts and polymorphs thereof.
1.6 “ Controlled
” means, with respect to any intellectual property right or
other intangible property, the possession by license or ownership
by a Party (or by an Affiliate (a) of such Party as of the
Effective Date, (b) controlled, as defined in Section 1.1
above, by such Party or such an Affiliate, or (c) that first
becomes an Affiliate after the Effective Date and is involved in
the Development of the Compounds) of the ability to grant to the
other Party access or a license or sublicense as provided herein
without violating the terms of any written contract with any Third
Party.
1.7 “ Data
” means any and all (a) research data, pharmacology
data, chemistry, manufacturing and control data, preclinical data,
clinical data and other similar technical and scientific data
necessary, useful or actually used in the Development or
Manufacture of Licensed Products within the Field or otherwise
generated under the Development Plans and (b) all
documentation and correspondence submitted, or required to be
submitted, to a Regulatory Authority, or received from a Regulatory
Authority, in connection with a Regulatory Approval for a Licensed
Product within the Field in any country, including, without
limitation, information in any drug master files or similar
documentation.
1.8 “ Development
” means all activities related to (a) researching or
developing a Licensed Product, or obtaining Regulatory Approvals
for such products or indications (including Label Expansions and
New Formulations within the Field pursuant to Section 6.1) in
the Territory, including preclinical testing, toxicology,
formulation, clinical trials, and regulatory affairs, as well as
(b) Phase IV Clinical Trials and preclinical studies conducted
after Regulatory Approval (such as carcinogenicity studies,
preclinical studies to establish pediatric dosing and the like)
that are required or requested by a Regulatory Authority to be
conducted after Regulatory Approval, as a condition of or in
connection with obtaining such Regulatory Approval. Development
shall also include Manufacturing activities for the purposes of
producing clinical supplies (or materials used in preclinical
testing or research), as well as Manufacturing scale up, process
development and validation for such a product prior the first
Regulatory Approval of such a product in the first Primary Market
(including manufacturing batches for validation and registration
purposes, to the extent such batches are not used as commercial
supplies) and the establishment of second source manufacturers or
manufacturing sites. Development shall not include Manufacture of
commercial supplies or Commercialization. As used herein
“Develop” shall also include such activities with
respect to a Compound, Related Product or Back-Up Compound.
1.9 “ Development
Costs ” means, except as otherwise expressly provided
in this Agreement, the internal and external costs incurred by a
Party or a Subsidiary in performing
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-3-
Development activities in accordance with the applicable
Development Plan, including, (a) costs of clinical trials for
Licensed Products in the Field and related clinical trial
materials, (b) costs of non-clinical studies and related study
materials, (c) costs associated with preparing and submitting
Regulatory Filings to obtain, maintain and/or expand Regulatory
Approval of Licensed Products in the Field, (d) costs
associated with establishing and validating Manufacturing
facilities (including process development and optimization of
Manufacturing processes) to Manufacture Licensed Products in the
Field and (e) such other amounts as reflected in such
Development Plan. For such purposes, costs for a Party’s
personnel performing the Development Plans shall, unless otherwise
determined by the JSC and reflected in the applicable Development
Plan, be calculated on the basis of the FTE Rate. Any dispute
regarding Development Costs shall be referred to the JDC for
resolution in accordance with the terms and conditions of this
Agreement.
1.10 “ EMEA
” means the European Medicines Agency or any successor agency
with responsibility for regulating the development, manufacture and
sale of human pharmaceutical products in the European Union.
1.11 “ [***]
” means a meeting held with the responsible Party and the
Regulatory Authority of a Primary Market Country to review the data
and results of the Phase II Clinical Trials of a Licensed Product
and to discuss with the Regulatory Authority such Party’s
plan to commence a Phase III Clinical Trial of such Licensed
Product and plans to complete additional work (e.g., preclinical
testing and manufacturing) in support of a future license
application.
1.12 “ Ex-U.S. Platform
Patent Rights ” means those Amicus Patent Rights
listed on Appendix 2 .
1.13 “ European
Union ” means Austria, Belgium, Bulgaria, the Czech
Republic, Cyprus, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden and the United Kingdom.
1.14 “ FDA
” means the United States Food and Drug Administration and
any successor thereto.
1.15 “ Field
” means the diagnosis, treatment and/or prevention of
(a) Gaucher Disease, Fabry Disease or Pompe Disease,
(b) to the extent the Parties mutually agree, in accordance
with Section 6.1.5 below, to include an additional indication
beyond those described in (a) above, such additional
indication and (c) if Shire duly exercises the [***]
‘s Option, then with respect to [***] for [***]’s (but
only [***] for [***]’s), [***]’s.
1.16 “ First Commercial
Sale ” means the first bona fide commercial sale of a
Licensed Product for use in the Field within a country in the
Territory following issuance of all applicable Regulatory Approvals
required prior to commercial sale in such country.
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-4-
1.17 “ FTE Rate
” means initially $ [***] per FTE (i.e., a full-time
equivalent person) per year, subject to adjustment as follows:
Commencing as of January 1, 2009, the FTE Rate shall increase
on January 1 of each year by the percentage increase in the
Consumer Price Index, for All Urban Consumers, as published by the
U.S. Department of Labor, Bureau of Labor Statistics, since the
last such increase under this definition (or in the case of the
first such increase, the Effective Date) and such increase shall be
effective for the then-current and all subsequent Development Plans
hereunder until further modified under this definition. Any dispute
regarding adjustment of the FTE Rate shall be referred to the JDC
for resolution in accordance with the terms and conditions of this
Agreement.
1.18 “ [***] for
[***]’s ” means a pharmaceutical product
containing [***] , for the treatment or prevention of
[***]’s. It is understood that references herein to an [***]
for [***]’s shall be deemed limited to the use of such
product only for the treatment and/or prevention of [***]’s,
and shall not include any other use of such product.
1.19 “ IND
” means an Investigational New Drug Application filed with
the FDA or the equivalent application or filing necessary to
commence clinical trials in a foreign jurisdiction, as
applicable.
1.20 “ Know-How
” means all information, results and Data of any type, in any
tangible or intangible form pertaining to the Development,
Manufacturing or Commercialization of Licensed Products within the
Field, including without limitation databases, ideas, discoveries,
inventions, trade secrets, practices, methods, tests, assays,
techniques, specifications, processes, formulations, formulae,
knowledge, know-how, skill, experience, materials, including
pharmaceutical, chemical and biological materials, products and
compositions, scientific, technical or test data (including
pharmacological, biological, chemical, biochemical, toxicological
and clinical test data), analytical and quality control data,
stability data, studies, procedures, drawings, plans, designs,
diagrams, sketches, technology, documentation or descriptions.
Notwithstanding the foregoing, as used in this Agreement,
“Know-How” (a) does not include Patent Rights in
the foregoing and (b) does not include methods, assays,
materials, techniques, or other items used or useful to perform
drug discovery or research in the Field, to the extent such items
are not reasonably necessary, useful or used to perform clinical
trials or Manufacturing of Licensed Products, preclinical testing
in support of such clinical trials and/or Manufacturing, or
Commercialization of a Licensed Product within the Field.
1.21 “ Licensed
Product ” means (a) Amigal, (b) AT2220,
(c) Plicera and (d) any other pharmaceutical formulation
of a Compound developed under a Development Plan, or by Shire as an
Independent Project in accordance with Section 6.1 below or as
part of a Combination Product in accordance with Section 4.5,
containing a Compound. For such purposes, and as otherwise used
herein:
1.21.1
“ Amigal ” means that certain
pharmaceutical product containing the active chemical entity
Deoxygalactonojirimycin, the formulation of which is described in
IND number 68,456;
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-5-
1.21.2
“ AT2220 ” means that certain
pharmaceutical product containing the active chemical entity
Deoxynojirimycin, the formulation of which is described in IND
number 76,268; and
1.21.3
“ Plicera ” means that certain
pharmaceutical product containing the active chemical entity
Isofagomine the formulation of which is described in IND number
73,475.
1.22 “ MAA
” means any marketing authorization application for a country
or region, requesting approval from the applicable Regulatory
Authority for commercial sale of a Licensed Product in the Field in
such country or region, and all amendments and supplements filed to
any such application.
1.23 “
Manufacture ” means manufacturing and related
activities, including chemical synthesis, formulation, processing,
testing, packaging, labeling, storing, warehousing, quality
control, quality assurance, releasing, disposing, handling,
shipping and all other activities undertaken or required to be
undertaken in order to manufacture and supply a Compound or
Licensed Product.
1.24 “ NDA
” means a New Drug Application for any product, as
appropriate, requesting permission to place a drug on the market in
accordance with 21 C.F.R. Part 314, and all supplements or
amendments filed pursuant to the requirements of the FDA, including
all documents, data and other information concerning a product
which are reasonably necessary for FDA approval to market a product
in the United States.
1.25 “ Net Sales
” means the gross amounts invoiced for sales of Licensed
Products in the Shire Territory by Shire, its Affiliates and/or its
Sublicensees to Third Parties, less deductions for the following
costs actually allowed or incurred:
1.25.1
freight, postage and transportation charges on shipment of such
Licensed Product to the customer, including handling and insurance
on such shipment;
1.25.2
sales (such as VAT or its equivalent) and excise taxes, other
consumption taxes, customs duties and other governmental charges
imposed upon the sale of such Licensed Product to the
customer;
1.25.3
charge-back payments, rebates, and similar product-specific
payments paid to a governmental entity specifically with respect to
sales of Licensed Products under a governmental rebate
program;
1.25.4
trade, quantity and cash discounts actually granted to the customer
with respect to the Licensed Product;
1.25.5
credits, rebates and charge-backs, and allowances or credits to the
customer on account of damaged products, rejection or returns of
Licensed Products or on account of retroactive price reductions
affecting such Licensed Product;
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-6-
1.25.6
actual bad debt expense not to exceed [***] of gross amounts
invoiced; and
1.25.7
any item similar in character or substance to any of the foregoing
prevailing at the time and customary in the pharmaceutical industry
at the time as determined by the JSC.
Notwithstanding the foregoing, the
amounts described in [***] . Sales among a Party and its
Affiliates or permitted Sublicensees for resale shall be excluded
from the computation of Net Sales; provided, however, that the
subsequent resale shall be included in Net Sales hereunder. If a
Licensed Product is sold for consideration other than cash, the Net
Sales from such sale or transfer shall be deemed the then fair
market value of such Licensed Product. For clarity, Net Sales shall
include sales of a Licensed Product made pursuant to a pre-license
sale through a named patient basis sales program or other special
access sales program. The supply of Licensed Products without
charge (x) as commercial samples, (y) as charitable
donations or (z) for use in Development and Post-Marketing
Studies shall be excluded from the computation of Net Sales.
In the event that a Licensed Product
is sold as part of a Combination Product in accordance with
Section 4.5, Net Sales from sales of such Combination Product
shall be determined pursuant to Section 4.5.
1.26 “ [***]
.
1.27 “ Patent
Rights ” means (a) all patents and patent
applications (including provisional applications), and all patents
issuing thereon (including utility, model and design patents and
certificates of invention), (b) all reissue patents, patents
of addition, divisions, renewals, continuations,
continuations-in-part, substitutions, extensions (including
supplemental protection certificates), registrations,
confirmations, re-examinations and (c) foreign counterparts of
any of the foregoing.
1.28 “ Phase II Clinical
Trial ” means a human clinical trial of a Licensed
Product conducted for purposes of preliminary determination of
efficacy and/or preliminary establishment of appropriate dosage
ranges for efficacy and safety in patients with the disease or
condition being studied and that would satisfy the requirements
under 21 C.F.R. §312.21(b).
1.29 “ Phase III Clinical
Trial ” means a human clinical trial of a Licensed
Product intended to be a pivotal trial for obtaining Regulatory
Approval or to otherwise establish safety and efficacy in patients
with the disease or condition being studied for purposes of filing
an NDA with the FDA or an MAA with the EMEA and that would satisfy
the requirements under 21 C.F.R. §312.21(c).
1.30 “ Phase IV Clinical
Trial ” means a human clinical trial for a Licensed
Product conducted after receipt of Regulatory Approval in the
country for which such trial is being conducted and that is
required or requested by a Regulatory Authority to be conducted
after Regulatory Approval, as a condition of or in connection with
obtaining and maintaining such Regulatory Approval.
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-7-
1.31 “ Post-Marketing
Studies ” means marketing studies, epidemiological
studies, modeling and pharmacoeconomic studies, investigator
sponsored clinical trials and post-marketing surveillance studies
of a Licensed Product, other than Phase IV Clinical Trials, that
are not intended for use as a basis for obtaining Regulatory
Approval (e.g., for a further indication, label expansion or
otherwise) with respect to such Licensed Product.
1.32 “ Primary
Market ” means any one or more of the following:
United States, France, Germany, Italy, Spain and the United
Kingdom.
1.33 “ Product
Marks ” means the product-specific trademarks, logos,
trade dress, or other symbols which a Party uses to Commercialize a
Licensed Product in its Territory, but excluding the Amicus and
Shire company names, tradenames, logos, trade dress and the
like.
1.34 “ Regulatory
Authority ” means any federal, national,
multinational, provincial, state or local regulatory agency,
department, bureau or other governmental entity, within a
regulatory jurisdiction in the Territory, with the authority to
grant any approvals, licenses, registrations or authorizations
necessary for the Development, Manufacture, use, Commercialization
or coverage and reimbursement of a Licensed Product. For clarity,
references in this Agreement to “Regulatory Authority of a
Primary Market Country” shall be deemed to include the
EMEA.
1.35 “ Regulatory
Approval ” means, with respect to a particular
country, all approvals (including, without limitation, where
applicable, pricing and reimbursement approval and schedule
classifications), licenses, registrations or authorizations by any
Regulatory Authority necessary for the Development, Manufacture,
use, storage, import, transport, Commercialization or sale of a
Licensed Product in such country.
1.36 “ Regulatory
Filings ” means all documents filed with a Regulatory
Authority, including INDs, NDAs, MAAs, Drug Master Files and the
like, as well as their counterparts in jurisdictions other than the
United States.
1.37 “ Related
Agreement ” means a Pharmacovigilance Agreement or
other agreements entered into by the Parties pursuant to or in
connection with this Agreement.
1.38 “ Sole
Invention ” means either a Shire Invention or an
Amicus Invention.
1.39 “
Sublicensee ” shall mean a Third Party to whom
Shire (or a Sublicensee) has granted a right to make, use, sell,
offer for sale, import or Commercialize a Licensed Product in the
Shire Territory pursuant to Section 2.2; and “
Sublicense ” shall mean an agreement or
arrangement granting such rights. As used in this Agreement,
“Sublicensee” shall not include a wholesaler or
reseller of a Licensed Product who does not market or promote such
Licensed Product.
1.40 “ Territory
” means both the Amicus Territory and the Shire Territory,
each as defined below:
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-8-
1.40.1
“ Amicus Territory ” means the United
States of America, including the District of Columbia and including
all possessions, territories and protectorates thereof and shall
include the European Union with respect to a Licensed Product upon
the reversion of the European Union with respect to such Licensed
Product in accordance with Section 7.2.5.
1.40.2
“ Shire Territory ” means the entire
world excluding the Amicus Territory.
As used herein, the phrase “a
Party’s Territory” or “such Party’s
Territory” shall mean either the Amicus Territory or the
Shire Territory, as the context indicates.
1.41 “ Third
Party ” means any person or entity, including a
governmental entity, other than Amicus, Shire or their respective
Affiliates.
1.42 “ Valid
Claim ” means a claim of a pending patent application
or an issued and unexpired patent, within the Amicus Patent Rights
that has not been held unpatentable, invalid or unenforceable by a
court or other government agency of competent jurisdiction in an
unappealed or unappealable decision (provided, however, that if the
holding of such court or agency is later reversed by a court or
agency with appropriate authority, the claim shall be reinstated as
a Valid Claim) and has not been admitted to be invalid or
unenforceable through reissue, re-examination, disclaimer or
otherwise nor lost in an interference proceeding. Notwithstanding
the foregoing, in the case of a pending but unissued patent
application, a pending claim of such application shall not be
deemed a Valid Claim if more than three (3) years have elapsed
since the first priority date to which such claim takes priority;
such claim shall thereafter not be deemed a Valid Claim until such
claim issues in a patent and otherwise meets this definition.
1.43 The following terms have the
meanings defined in the corresponding sections of this Agreement
referenced below:
| |
|
|
|
|
|
|
|
Defined Term |
|
Section |
|
Defined Term |
|
Section |
|
[***]
|
|
7.2.4(e) |
|
Manufacturing Cost |
|
7.3.3(b)(ii) |
|
Acting Party
|
|
10.2.5 |
|
Materials |
|
8.1 |
|
Alleged
Infringement
|
|
10.3.1 |
|
Milestone |
|
7.2.3 |
|
Alliance
Manager
|
|
3.6 |
|
MSSM |
|
16.14 |
|
Annual Net
Sales
|
|
7.3.1 |
|
MSSM Agreement |
|
16.14 |
|
Amicus
Indemnitees
|
|
13.2 |
|
New Formulation |
|
6.1.1 |
|
Amicus
Invention
|
|
10.1.2(a) |
|
Non-Developing Party |
|
6.1.2(b) |
|
Auditing
Party
|
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7.8.2 |
|
Notice Date |
|
15.5.2(a)(ii) |
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Back-Up
Compound
|
|
6.4.4(a) |
|
Notice Period |
|
15.5.2(a)(ii) |
|
Back-Up Compound
Notice
|
|
6.4.4(b) |
|
Offer |
|
6.2.2(a) |
|
Back-Up Compound
Opt In
Exercise Period
|
|
6.4.4(c) |
|
Opt-In Notice |
|
6.1.3(a) |
|
Back-Up Compound
Opt In
|
|
6.4.4(a) |
|
Opt-In Period |
|
6.1.3(a) |
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-9-
| |
|
|
|
|
|
|
|
Right
|
|
|
|
|
|
|
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Breach
Notice
|
|
15.2 |
|
Opt-In Right |
|
6.1.3 |
|
Business Day
|
|
16.9 |
|
Shire Indemnitees |
|
13.1 |
|
[***]
|
|
7.2.4 |
|
Shire Invention |
|
10.1.2(a) |
|
Collaboration
Results Publication
|
|
14.5 |
|
Shire IP |
|
6.1.1(d)(ii) |
|
Combination
Product
|
|
4.5 |
|
[***]’s Option |
|
6.2.1 |
|
Commercializing
Party
|
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10.6.2 |
|
[***]’s Option Exercise
Fee |
|
6.2.1(b) |
|
Committee
|
|
3.4.1 |
|
[***]’s Option Notice |
|
6.2.1(a) |
|
Committee
Co-Chair
|
|
3.5.4 |
|
[***]’s Option Period |
|
6.2.1(a) |
|
Committee
Dispute
|
|
16.8.1 |
|
Permitted Overrun |
|
7.4.2 |
|
[***]
|
|
7.2.4(d) |
|
Pharmacovigilance Agreement |
|
9.3 |
|
Confidential
Information
|
|
14.1 |
|
Prosecuting Party |
|
10.2.4 |
|
Confidentiality
Agreement
|
|
14.3 |
|
prosecution and maintenance |
|
10.2.6 |
|
Cooperating
Party
|
|
14.6.2 |
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Receiving Party |
|
7.4.4(b) |
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Developing
Party
|
|
6.1.1 |
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Reimbursable Share |
|
6.1.3(c) |
|
Development
Period
|
|
15.5.2(a)(ii) |
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Reimbursing Party |
|
7.4.4(b) |
|
Development
Plan
|
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4.2.1 |
|
Related Product |
|
6.3.1 |
|
Excess Costs
|
|
7.4.2 |
|
Related Product Notice |
|
6.3.1 |
|
Existing
In-Licenses
|
|
10.6.1 |
|
Related Product-Opt In Period |
|
6.3.2 |
|
Force Majeure
Event
|
|
16.5 |
|
Related Product-Opt In Right |
|
6.3.2 |
|
Forecast
|
|
4.2.1 |
|
Requesting Party |
|
6.4.1 |
|
Generic
Competition
|
|
7.3.2 |
|
Responding Party |
|
7.8.2 |
|
Generic
Version
|
|
7.3.2 |
|
Reverted Products |
|
15.5.2(a)(i) |
|
Gross Margin
|
|
7.3.3(b)(i) |
|
RFR Acceptance |
|
6.2.2(a) |
|
[***]
|
|
2.2.2(b) |
|
RFR Acceptance Period |
|
6.2.2(a) |
|
Indemnitee
|
|
13.3 |
|
Right of First Refusal |
|
6.2.2 |
|
Indemnitor
|
|
13.3 |
|
Right of First Refusal Notice |
|
6.2.2(a) |
|
Independent
Development Costs
|
|
6.1.2(c)(ii) |
|
[***] |
|
7.2.4(e) |
|
Independent
Project
|
|
6.1.2(a) |
|
[***] |
|
2.4.1 |
|
Independent
Trial
|
|
4.3.2 |
|
Secondary Country |
|
7.2.5 |
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Initiating
Party
|
|
14.6.2 |
|
Special Committee |
|
3.4.1 |
|
[***]
|
|
7.2.4(c) |
|
Spending Party |
|
7.4.2 |
|
Inspected
Party
|
|
9.5 |
|
Statement of Costs |
|
6.1.2(c)(i) |
|
JAMS
|
|
16.8.1(b) |
|
Sublicensing Party |
|
10.6.2 |
|
JCC
|
|
3.3 |
|
[***] |
|
7.2.4(a) |
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-10-
| |
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JDC
|
|
3.2 |
|
[***] |
|
7.2.4(b) |
|
Joint
Commercialization Committee
|
|
3.3 |
|
Supply Agreement |
|
8.2 |
|
Joint Development
Committee
|
|
3.2 |
|
Target |
|
6.3.1 |
|
Joint
Inventions
|
|
10.1.2(a) |
|
Term |
|
15.1 |
|
Joint Patent
Rights
|
|
10.2.3 |
|
Terminated Product |
|
6.4.4(a) |
|
Joint Steering
Committee
|
|
3.1 |
|
Third Party Claim |
|
13.1 |
|
JSC
|
|
3.1 |
|
Third Party Technology |
|
10.6.2 |
|
JSC Proposal
Notice
|
|
6.1.1 |
|
Trademark Licensee |
|
11.1.3 |
|
Label
Expansion
|
|
6.1.1 |
|
Trademark Licensor |
|
11.1.3 |
|
Laws
|
|
16.9 |
|
[***] |
|
2.4.3 |
|
Liabilities
|
|
13.1 |
|
[***] |
|
15.5.2(a)(ii) |
|
Licensors
|
|
10.6.1 |
|
Wind down Period |
|
15.5.2(b) |
ARTICLE 2
GRANT OF RIGHTS
2.1 Amicus Grant . Subject to
the terms and conditions of this Agreement, Amicus hereby grants to
Shire, under the Amicus IP:
2.1.1
an exclusive license to use, import and sell or Commercialize
Licensed Products in the Field (excluding the treatment, prevention
or diagnosis of Fabry Disease with Amigal) in the Shire Territory,
subject to Section 2.1.3;
2.1.2 a
sole license (with a right to sublicense) to use, import and sell
or Commercialize Amigal for the treatment, prevention or diagnosis
of Fabry Disease in the Shire Territory, subject to
Section 2.1.3;
2.1.3 a
co-exclusive (with Amicus and its contractors or licensees) license
to Manufacture the Compounds and Licensed Products in the Territory
for use, import, sale or Commercialization within the Field in the
Shire Territory (specifically subject to Section 8.3 below)
and to Develop the Licensed Products within the Field (specifically
subject to Section 6.1 below); provided, that if a Party (or
any other entity acting under authority of such Party) proposes to
perform clinical trials of a Licensed Product for an indication in
the Field in a country within the other Party’s Territory,
the conduct of such trial in such country shall be subject to such
other Party’s approval, not to be unreasonably withheld;
and
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-11-
2.1.4
the right to have the foregoing performed on its behalf by
subcontractors in accordance with Section 4.4.
Shire agrees that neither it, nor any
of its Affiliates, shall (a) practice the Amicus IP other than
as expressly authorized under this Article 2 if such actions
would constitute an infringement or misappropriation thereof nor
(b) Develop or Commercialize in the Amicus Territory a product
containing a Compound, except as a Licensed Product in accordance
with this Agreement.
2.2 Sublicenses .
2.2.1
Affiliates . Shire may grant to one or more of its
Affiliates a Sublicense in connection with Shire’s
Development, Manufacture and/or Commercialization of the Compounds
and Licensed Products under this Agreement; provided that Shire
shall remain responsible for the activities of such Affiliate to
the same extent as if such activities were conducted by
Shire.
2.2.2
Third Parties .
(a) Shire
may also grant to Third Parties a Sublicense under the rights
granted to Shire under Section 2.1 to one or more Licensed
Products, to the extent not in conflict with Section 2.1 or
this Section 2.2.2.
(b) Notwithstanding
Paragraph (a) above, Shire may grant a Sublicense under this
Section 2.2.2 (i) only to a Third Party that is not a
“competitor of Amicus” and (ii) in a country where
Shire or an Affiliate of Shire has direct commercial operations in
[***] , only if Shire remains primarily responsible for
conducting Commercialization activities in such country. For such
purposes, a “competitor of Amicus” shall mean those
companies listed on Appendix 3 or as appended thereto
upon the written agreement of the Parties.
2.2.3
Conditions of Sublicenses . If Shire grants a Sublicense
under its rights in Section 2.1, such Sublicense shall be at
least as protective of the Compounds and Licensed Products as the
terms and conditions of this Agreement. Shire shall remain
responsible for the performance of any of its Sublicensees under
such rights, and shall remain responsible for any payments due
hereunder with respect to activities of the Sublicensee. Shire
shall use Commercially Reasonable Efforts to ensure that its
Sublicensees perform at the same level as Shire is obligated to
perform hereunder and do not engage in activities that would be
harmful to the Licensed Products or the business related to the
Licensed Products, and to take appropriate measures to remedy any
failure of a Sublicensee to comply with the foregoing. It is
understood and agreed that, except as may be otherwise agreed in
writing by the Parties, Sublicensees shall have no rights with
respect to the Committees or with respect to the Development Plans,
nor to exercise any provision of this Agreement other than the
exercise of their rights pursuant to Section 2.1 above. Upon
request, Shire shall provide to Amicus a copy of the Sublicense,
provided that the agreement may be redacted to the extent not
necessary for Amicus to understand the scope and terms of such
Sublicense. For purposes of clarity, Shire shall have the right to
redact all financial and other proprietary terms with
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-12-
respect
to any Sublicense agreement provided to Amicus as required
hereunder to the extent not required to determine that such
Sublicense complies with this Agreement.
2.3 Exchange of Data and
Know-How .
2.3.1
By Amicus . Promptly following the Effective Date, Amicus
will make available to Shire, at no cost or expense to Shire, all
Amicus Know-How necessary, useful or used to Develop Licensed
Products within the Field, including all Data for such Licensed
Products within the Field that Amicus has of the Effective
Date.
2.3.2
By Either Party . During the Term, Amicus shall provide to
Shire additional Amicus Know-How developed pursuant to activities
under the Development Plans necessary, useful or used to Develop
Licensed Products within the Field, and Shire shall provide to
Amicus any Know-How Controlled by Shire and developed pursuant to
activities under the Development Plans necessary, useful or used to
Develop the Licensed Products within the Field, in each case that
has not previously been provided hereunder, promptly upon request
by the other Party. The Party providing such Know-How shall provide
the same in electronic form to the extent the same exists in
electronic form, and shall provide copies as reasonably requested
or an opportunity for the other Party to inspect (and copy) all
other materials comprising such Know-How (including, for example,
original patient report forms and other original source data, to
the extent allowable under Laws). Except as expressly provided,
neither Party shall be obligated under this Section 2.3.2 (or
other provisions requiring disclosure of Know-How hereunder) to
provide to the other Party (a) any of the providing
Party’s Confidential Information that does not relate to a
Licensed Product within the Field, including competitive and
marketing strategies generally applicable to the providing
Party’s products or (b) any information regarding
Commercialization except as necessary to Develop or Commercialize
the Licensed Products.
2.3.3
Provision of Data to JDC . Upon request by the JDC, each
Party shall promptly provide the JDC with summaries in reasonable
detail of all Data generated or obtained in the course of such
Party’s performance of activities under the Development
Plans.
2.3.4
Level of Effort Required . Notwithstanding the foregoing,
neither Party shall be considered to be in breach of this
Section 2.3 for failure to disclose information, if, despite
Commercially Reasonable Efforts, the identification of such
information is impractical.
2.3.5
Right to Use . Each Party shall have the right to use
Know-How to be provided to such Party under this Section 2.3,
in connection with the Development and Commercialization of
Compounds and Licensed Products hereunder.
2.4 [***] . [***]
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2.5 No Implied Licenses . No
right or license under any either Party’s Know-How, Patent
Rights or other subject matter is granted or shall be deemed
granted by implication, estoppel or otherwise. All such rights or
licenses are granted only as expressly provided in this Agreement
and the Related Agreements. Without limiting the foregoing, nothing
herein shall be deemed to grant to Shire a right or license to any
active pharmaceutical ingredient other than the Compounds.
ARTICLE 3
GOVERNANCE
3.1 Joint Steering Committee .
Within thirty (30) days following the Effective Date, the
Parties shall establish a Joint Steering Committee (the “
Joint Steering Committee ” or “
JSC ”). The JSC shall have the duties described
in Section 3.1.1 below.
3.1.1
Duties . The Joint Steering Committee shall:
(a) review
and approve the Development Plans, and any material changes thereto
as shall be submitted by the JDC to the JSC for approval;
(b) determine
whether to terminate the joint Development of one or more Licensed
Products pursuant to Section 6.4 below;
(c) determine
actions necessary to prevent importation or sales of Licensed
Products sold by a Party into the other Party’s Territory by
a Third Party (e.g. determination that neither Party may sell to
such Third Party);
(d) resolve
any matters submitted to the JSC by the JDC in accordance with
Section 16.8 below; and
(e) perform
such other duties as are specifically assigned to the JSC in this
Agreement.
3.1.2
Additional Activities . In addition, at the meetings of the
JSC, the Parties will discuss the following matters as reasonably
requested by either Committee Co-chair of the JSC:
(a) strategic
direction for the Development, Manufacturing and Commercialization
of Licensed Products;
(b) the
progress of the Parties in executing the Development Plans;
and
(c) any
other matters pertaining to Development, Manufacturing and
Commercialization of Licensed Products in the Field in the
Territory, and the collaboration between the Parties. However, it
is understood that the decision-making authority of the JSC is
limited to those matters described in Section 3.1.1
above.
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3.2 Joint Development
Committee . The Parties shall form a Joint Development
Committee (the “ Joint Development Committee
” or “ JDC ”), no later than thirty
(30) days following the Effective Date. The JDC shall have the
duties described in Section 3.2.1 below.
3.2.1
Duties . The Joint Development Committee shall:
(a) propose
revisions to the Development Plans as needed, but no less
frequently than annually;
(b) propose
supplements or revisions to the applicable Development Plans with
respect to Label Expansions and New Formulations and submit the
same to the JSC for approval;
(c) review
and approve clinical protocols for Licensed Products within the
Field under the Development Plans;
(d) review
and finalize the common registration dossier for each Licensed
Product generated under a Development Plan;
(e) monitor
the progress of the activities undertaken by each of the Parties
pursuant to each Development Plan (including review of the conduct
of clinical trials conducted by each Party pursuant to a
Development Plan);
(f) monitor
the rate of spending pursuant to activities under a Development
Plan against the budget for such activities in the Development
Plan; and
(g) perform
such other duties as are specifically assigned to the JDC in this
Agreement.
3.2.2
Additional Activities . In addition, at the meetings of the
JDC, the Parties will discuss the following matters as reasonably
requested by either Committee Co-Chair of the JDC:
(a) the
progress of the activities undertaken by the Parties pursuant to
each Development Plan in relation to the corresponding budgets and
timelines;
(b) the
flow of information with respect to Development of the Licensed
Products within the Field;
(c) the
overall strategy for all material filings with applicable
Regulatory Authorities in the Primary Markets with respect to the
Licensed Products in the Field in the Shire Territory, in
accordance with the Development Plans, as well as regulatory
strategy for Licensed Products in the Field in Japan;
(d) the
Parties’ scientific presentation and publication strategy
relating to Licensed Products within the Field pursuant to
Section 14.5 below, until such time as the JCC is
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formed
pursuant to Section 3.3 below, at which time such matters
shall be deemed to be within the duties of the JCC under
Section 3.3.1 below;
(e) impact
of operational activities related to Manufacturing, (for example,
forecast development, growth, changes, variances, manufacturing
process improvements, equipment/new facility introduction, capacity
improvements, cycle time and lead time reduction, improvement in
shelf life, inventory management, complaints, and in-market
quality/performance reports); and
(f) any
other matters pertaining to Development of Licensed Products in the
Field. However, it is understood that the decision-making authority
of the JDC is limited to those matters described in
Section 3.2.1 above.
3.3
Joint Commercialization Committee . The Parties shall form a
Joint Commercialization Committee (the “ Joint
Commercialization Committee ” or “
JCC ”), no later than thirty days following the
Initiation of the First Phase III Clinical Trial for a Licensed
Product.
3.3.1
Duties . The Joint Commercialization Committee shall serve
as a forum for communication regarding Commercialization activities
and shall discuss and review the following:
(a) any
Post-Marketing Studies proposed to be conducted by either
Party;
(b) coordination
of global branding to the extent practicable;
(c) promotional
and other Commercialization activities of the Parties under this
Agreement in the Amicus Territory and the Shire Territory,
including pre-launch and post-launch activities;
(d) proposed
Product Marks and branding strategy;
(e) coordination
of the participation of physicians who are key opinion leaders
during Development and Commercialization to achieve consistent
messaging and collaboration in connection with conferences and
other marketing activities, provided, however, that each Party
shall have control over Commercialization of Licensed Products in
the Field in its respective Territory; and
(f) such
other matters as appropriate to further the purposes of this
Agreement as determined by the Joint Steering Committee.
For clarity, it is understood that
the purpose of the JCC is to promote communication and coordination
regarding the foregoing matters and that the JCC shall not have
decision making authority.
3.4 Special Committees and
Sub-Committees; Financial Procedures .
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3.4.1
Special Committees and Sub-Committees . The JSC may from
time to time establish one or more special committees (each, a
“ Special Committee ”), each such Special
Committee to consist of an equal number of representatives of each
Party as determined by the JSC, to perform certain duties and
exercise certain powers of the JSC as expressly delegated by the
JSC to such Special Committee. For example, it is understood that,
from time to time, the JSC may establish one or more Special
Committees to coordinate intellectual property matters in
accordance with Article 10 below (it being understood such
Special Committee shall be for communication purposes and shall not
have decision making authority). Each of the JSC, JDC, JCC and any
such Special Committee is referred to herein as a “
Committee .” Each Committee may from time to
time establish sub-committees to handle matters within the scope of
its authority hereunder.
3.4.2
Certain Financial Procedures . In addition, the JSC may
establish a Special Committee to approve procedures, formats and
timelines consistent with this Agreement for reporting financial
data and monitoring financial performance under this Agreement; and
if the Parties, or such Special Committee, as applicable, are
unable to agree upon any such procedures, formats or timelines, the
matter shall be resolved as a Committee Dispute in accordance with
the provisions of Section 16.8 below.
3.5
Committee Membership, Decision-Making and Operations
.
3.5.1
Membership of Committees . Each Committee shall be composed
of an equal number of representatives from each of Amicus and
Shire. Unless the Parties otherwise agree, the number of
representatives for each of Amicus and Shire shall be:
(a) with respect to the JSC, three (3) representatives,
(b) with respect to the JDC, three (3) representatives
and (c) with respect to the JCC, three
(3) representatives, and each of the above with ad hoc members
as deemed necessary by the relevant committee. At least one
representative of each Party on the JDC and JCC will be at the vice
president level or above. All representatives of each Party on the
JSC will be at the vice president level or above, subject to the
next sentence, and at least one representative of each Party on the
JSC will be at the senior vice president (or its equivalent) level
or above. In addition, each Party’s Alliance Manager will
serve on the JSC, JDC and JCC in a nonvoting capacity. Each Party
may replace any of its representatives on a Committee at any time
upon written notice to the other Party, provided that such
replacement is of comparable standing and authority within that
Party’s organization as the person he or she is
replacing.
3.5.2
Committee Meetings . Each Committee shall hold regularly
scheduled meetings at such times as it elects to do so, provided,
however, that (a) the JSC shall meet at least twice every
calendar year, (b) the JDC shall meet at least once every
calendar quarter, unless the respective Committee members otherwise
agree and (c) the JCC shall meet at least twice every calendar
year. Each Party may also call for special meetings to resolve
particular matters requested by such Party. The applicable
Committee Co-Chair shall provide Committee members no less than
fifteen (15) Business Days’ notice of each regularly
scheduled meeting, and no less than ten (10) Business
Days’ notice, or such shorter time period as a Committee
Co-Chair deems appropriate under the circumstances, but in no event
less than two (2) Business Days’ notice, of any
special
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meetings
called by either Party. Meetings may be held by audio or video
teleconference with the consent of each Party, which shall not be
unreasonably withheld, provided that unless otherwise agreed at
least two (2) of the meetings of each of the JSC and JDC per
calendar year shall be held in person. Locations for meetings held
in person shall alternate between Amicus’ facilities in
Cranbury, New Jersey, and Shire’s facilities in Cambridge,
Massachusetts, or at such other locations as the Parties may
otherwise agree. A reasonable number of other employees of each
Party involved in the Development, Manufacture or Commercialization
of Licensed Products may attend Committee meetings as nonvoting
participants with the approval of the respective Committee, and,
with the consent of each Committee Co-Chair, which consent shall
not be unreasonably withheld, a reasonable number of consultants,
representatives or advisors involved in the Development,
Manufacture or Commercialization of Licensed Products may attend
Committee meetings as nonvoting observers, provided that such
consultants, representatives and advisors are under obligations of
confidentiality and non-use applicable to the Confidential
Information of each Party that are at least as stringent as those
set forth in Article 14. Each Party shall be responsible for
all of its own expenses of participating in the JSC, JDC, JCC and
any Special Committee.
3.5.3
Decision-Making and Dispute Resolution . Decisions of each
Committee shall be made at a duly called meeting of the applicable
Committee. Shire’s members of each Committee shall
collectively have one (1) vote and Amicus’ members of
each Committee shall collectively have one (1) vote, with
decisions made by unanimous vote (assuming a quorum of at least two
(2) representative members from each Party, and with each
Party’s vote being cast by such Party’s Committee
Co-Chair of the relevant Committee). Each Committee may act on a
specific issue without a meeting if it is documented in a written
consent signed by each of the Co-Chairs of the applicable Committee
from each Party. Notwithstanding anything herein to the contrary,
no Committee shall have authority to amend, modify or waive
compliance with this Agreement or the Related Agreements. If a
Committee fails to reach consensus on an issue specifically
designated in this Agreement for its decision, the matter shall be
resolved under the procedures set forth in Section 16.8.
3.5.4
Committee Co-Chairs . Each calendar year, each Party shall
appoint one of its representatives on each Committee to co-chair
meetings of such Committee (the “ Committee
Co-Chair ”). For each Committee, the Committee
Co-Chairs shall coordinate and prepare the agenda, ensure the
orderly conduct of meetings and prepare and issue minutes of each
meeting within thirty (30) days thereafter. Such minutes will
not be finalized until the Committee Co-Chair from each Party have
reviewed and confirmed the accuracy of such minutes in writing. The
Committee Co-Chairs will solicit agenda items from the members of
the applicable Committee and provide an agenda along with
appropriate information for such agenda reasonably in advance of
each meeting. It is understood that such agenda will include all
items requested by either Committee Co-chair for inclusion
therein.
3.5.5
Reports . In addition, subject to the foregoing, each Party
shall keep the other Party (through the relevant Committees)
informed of Development, Manufacturing and Commercialization
activities pertaining to Licensed Products in the Field in the
applicable Territory
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REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
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by such
Party, including by providing regular reports to the relevant
Committees summarizing such activities, and such other information
as the other Party may reasonably request from time to time.
3.6 Alliance Managers .
Within thirty (30) days following the Effective Date, each
Party shall appoint a representative (an “ Alliance
Manager ”), who will be at the director (or its
equivalent) level or above, to facilitate communications between
the Parties and to act as a liaison between the Parties with
respect to such matters as the Parties may mutually agree in order
to maximize the efficiency of the collaboration. Each Party may
replace its Alliance Manager with an alternative representative
satisfying the requirements of this Section 3.6 at any time
with prior written notice to the other Party.
ARTICLE 4
DEVELOPMENT
4.1 Overall Efforts in
Development . Amicus and Shire shall establish and
implement the Development Plans in a prompt and expeditious manner
with respect to each Licensed Product within the Field, and in a
manner that harmonizes the Development of Licensed Products within
the Field towards (a) a common registration dossier as a basis
for license applications in the Primary Markets and, to the extent
described in Section 4.2.5(e) below, Japan, and
(b) Regulatory Approval for such Licensed Product in each of
the Primary Markets. The Parties shall use Commercially Reasonable
Efforts to ensure that each Development Plan provides at all times
for adequate resources to achieve such result in an expeditious and
efficient manner.
4.2 Development Plans
.
4.2.1
General . The JDC shall establish a rolling three
(3) calendar year plan and budget for the cooperative
Development of each Licensed Product within the Field under this
Agreement (as such may be amended from time to time in accordance
with this Agreement, and as approved by the JSC, each a “
Development Plan ”). Each Development Plan
shall include (a) a reasonably detailed written plan of
Development activities and budget for the first thirteen (13)
months of such period, together with the JDC’s then-current
preliminary estimate of the Development activities and budget for
the final twenty-three (23) months of the rolling thirty-six
(36) month period (such twenty-three (23) month estimated
plan and budget, together with the items in clause (b) below
for such 23-month period, being referred to below as the “
Forecast ”), (b) an allocation of
Development activities between the Parties for the first thirteen
(13) months of such period, including but not limited to the
number of allocated full time equivalent personnel and the
applicable FTE Rate and other out-of-pocket expenses to be incurred
by each Party during such period, together with an overall
allocation of responsibilities for activities to be conducted
during the remaining twenty-three (23) months covered by such
Development Plan, and (c) the overall program of Development
for such Licensed Product within the Field, including clinical
studies, regulatory strategies and other elements for obtaining
Regulatory Approval of such Licensed Product in each country within
the Primary Markets. It is understood that the JDC will modify and
update the Forecast annually in connection with the procedure for
amending and updating each Development Plan under
Sections 4.2.3 and 4.2.4 below. In addition, the Parties shall
cooperate to establish
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additional non-binding forecasts of Development Costs for the
rolling four (4) year period beyond the three (3) year
term of each Development Plan (including as updated).
4.2.2
Initial Development Plans . The initial Development Plans
for Plicera, Amigal and AT2220 are attached hereto as
Appendix 4 .
4.2.3
Amendments . Each Development Plan shall be updated by the
JDC for approval by the JSC, not less than annually (as set forth
in Section 4.2.4 below), or more frequently as needed to take
into account completion, commencement or cessation of Development
activities not contemplated by the then current Development Plan.
The JDC will submit to the JSC for approval any material amendment
to each Development Plan in advance of implementation of such
amendment, including, without limitation, any amendment that
effects a material increase of the budget or timeline in effect for
the current year of such Development Plan, subject to
Section 4.2.4 below.
4.2.4
Timing and Process for Amendments . With respect to each
Development Plan, by September 15 of each calendar year after
the Effective Date commencing in 2008, the JDC shall present to the
JSC for its review and approval a proposed Development Plan for the
next three (3) calendar years in the form described in
Section 4.2.1 above. If such revised Development Plan is not
approved by the JSC by January 1 of a calendar year, then,
until such time as a revised Development Plan is either approved by
the JSC or established pursuant to the dispute resolution procedure
set forth in Section 16.8 below, (a) the preceding
Development Plan (including the Forecast for the applicable period)
shall continue to govern the Parties’ Development activities,
(b) each Party shall be permitted to conduct Development
activities allocated to such Party in such preceding Development
Plan and incur Development Costs consistent with such preceding
Development Plan, which Development Costs shall be shared by the
Parties in accordance with Section 7.4.1 below, and
(c) in any case each Party may continue any on-going clinical
trials initiated by such Party in accordance with such preceding
Development Plan, and the reasonable costs incurred by such Party
in connection with such clinical trials shall continue to be shared
by the Parties in accordance with Section 7.4.1 below.
4.2.5
Development Activities . In addition to the information
described in Section 4.2.1 above, each Development Plan shall
be as further described in this Section 4.2.5.
(a) Unless
otherwise agreed by the Parties, each Development Plan shall
allocate to Shire responsibility for (i) strategic and
operational control of Regulatory Approval within the Shire
Territory, including conducting meetings on programs relating to
Regulatory Filings and meetings on pivotal study designs, and
submissions leading up to and subsequent to the filings for
Regulatory Approval (such as scientific advice and pre-MAA
meetings), (ii) managing relationships with physicians and
other key personnel at clinical trial sites in the Shire Territory
in connection with such Development Plan, (iii) to the extent
included in such Development Plan, any Development activities to be
undertaken in Japan, and (iv) such other activities as the
Parties mutually agree from time to time. In furtherance of the
foregoing and as contemplated by Section
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9.22,
Amicus shall have the opportunity to accompany Shire to meetings
with Regulatory Authorities in the Shire Territory.
(b) Unless
otherwise agreed by the Parties, each Development Plan shall
allocate to Amicus responsibility for (i) strategic and
operational control of Regulatory Approval (including conducting
meetings and other related activities as described in (a)(i) above)
for the Amicus Territory, (ii) managing relationships with
physicians and other key personnel at clinical trial sites in the
Amicus Territory in connection with such Development Plan,
(iii) control of clinical operations for all phase I clinical
trials and Phase II Clinical Trials, and (iv) preclinical
activities (including ongoing non-clinical testing).
(c) By
January 15, 2008, the JSC shall establish the final versions
of the initial Development Plans referenced in Section 4.2.2,
including Development activities and budgets as contemplated by
Section 4.2.1. Such final Development Plans shall set forth
the allocation between the Parties of Development activities other
than those described in (a) and (b) above. For clarity,
it is understood that, until such time such final versions of the
initial Development Plans are so established, the initial
Development Plans referenced in Section 4.2.2 shall continue
to govern the Parties’ Development activities.
Notwithstanding anything herein, the 2008 budget for Development
shall not exceed [***] without the mutual consent of the
Parties.
(d) Notwithstanding
anything herein, within the [***] of the Effective Date no
pivotal clinical trial or Phase III Clinical Trial under a
Development Plan shall be conducted without the prior written
consent of each Party.
(e) Each
Development Plan shall be directed to those activities necessary to
obtain Regulatory Approval of the applicable Licensed Product in
the Field in the Primary Markets and, to the extent the Parties
agree, Japan. In addition, the Parties may, from time to time,
agree to include certain Post-Marketing Studies under a Development
Plan and to share the costs thereof in accordance with
Section 7.4 below; provided, however, that unless so included,
the conduct of Post-Marketing Studies shall be as addressed in
Section 4.3.
(f) It
is understood that, from time to time, it may be necessary for
Shire to conduct additional Development activities beyond that set
forth in a Development Plan, in order to obtain Regulatory Approval
for a Licensed Product in a country of the Shire Territory other
than the Primary Markets. Shire may conduct such additional
Development activities outside of the Development Plans at its own
cost.
4.3 Post-Marketing Studies;
Monitoring of Independent Trials
4.3.1
Post-Marketing Studies . For clarity, if a Party desires to
conduct a Post-Marketing Study that has not been approved by the
Parties for inclusion under the applicable Development Plan under
Section 4.2.5(e) above, such Party may perform such
Post-Marketing Study, at its own expense. Further, the Party
conducting such Post-Marketing Study outside such Development Plan
shall not be required to share the Data (other than safety Data, in
accordance with
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the
Pharmacovigilance Agreement or as otherwise required by a
governmental or a regulatory authority or applicable Laws)
resulting from such Post-Marketing Study.
4.3.2
Notice; Suspension of Independent Trials . The Party
proposing to conduct a Post-Marketing Study outside the applicable
Development Plan in accordance with Section 4.3.1 above or any
other clinical trial of a Licensed Product (other than [***]
for [***]’s) but outside the Development Plan (each, an
“ Independent Trial ”) shall notify the
other Party at least sixty (60) days prior to submitting a protocol
to the Institutional Review Board or Ethics Committee, as
applicable, for such Independent Trial (which notice shall include
a synopsis, in reasonable detail, of the proposed protocol). The
Party proposing to conduct such Independent Trial may proceed with
such trial (as described in its notice to the other Party) after
such sixty (60) day notice period unless such other Party
reasonably and in good faith objects to such protocol on the
grounds that it would cause, or would have an unreasonable risk of
causing, a material adverse effect upon the Development or
Commercialization of a Licensed Product containing the same
Compound. In the case of such an objection, the objecting Party
shall give written notice of its objection (including a reasonably
detailed explanation of the basis therefor) to the JSC within such
sixty (60) day period and the Party proposing such protocol
shall not commence such trial pending the resolution of such matter
pursuant to this Section 4.3.2. If the JSC is unable to reach
consensus on such matter within thirty (30) days after such
matter is referred to the JSC, then, upon written notice of either
Party to the other Party, such matter shall be resolved as a
Committee Dispute in accordance with the provisions of
Section 16.8 below.
4.4 Subcontractors .
Except as otherwise set forth in this Agreement, each Party may
engage subcontractors to perform, under its direction, specific
functions that are assigned to it hereunder or that it carries out
in the exercise of its rights hereunder, in each case in accordance
with this Section 4.4. Each Party shall be fully responsible
under this Agreement for the performance hereof by its permitted
subcontractors as if such Party so performed this Agreement
itself.
4.5 Combination Products
. For purposes hereof, a “ Combination
Product ” means any Licensed Product containing a
Compound combined with one or more other active ingredients (e.g.,
a co-formulation) or a product in which both a Licensed Product and
one or more other products or components are packaged together and
sold for a combined price. In the event that Shire desires to
Develop or Commercialize a Combination Product:
4.5.1
if such Combination Product, in Shire’s good faith
determination, is not intended for Commercialization outside the
Shire Territory and/or Shire does not Control the Patent Rights
necessary to Develop and Commercialize such Combination Product
outside the Shire Territory, then (a) Shire may Develop and
Commercialize such Combination Product solely in the Shire
Territory and (b) the [***] ; and
4.5.2
if the Parties agree to Commercialize such Combination Product in
the Amicus Territory and Shire Controls the Patent Rights necessary
to Develop and Commercialize such Combination Product in the Amicus
Territory, then the Parties [***] . It is understood that
neither Party is obligated to agree on such terms and if the
Parties cannot so agree the Combination
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Product
shall not be included in a Development Plan and Shire may pursue
such Combination Product under Section 4.5.1.
4.6 Term of Ongoing Development
and Committee Obligations . The Parties’
obligations under Sections 4.1 and 4.2 (and the Development
Plans), and to share Development Costs under Section 7.4.1
below, and Amicus’ supply and Manufacturing obligations under
Article 8 below, shall terminate eighteen (18) years
after the Effective Date. At such time, all Committees will
terminate. However, each Party will continue to have an approval
right with respect to matters specified to be decided by such
Committees under this Agreement. In such event, if the Parties are
unable to reach agreement on a matter specified in this Agreement
to have been decided by such Committee, the matter shall be
determined by binding arbitration in accordance with the procedures
in Sections 16.8.1(b) through (d) below.
ARTICLE 5
COMMERCIALIZATION in the Shire Territory
5.1 General . Subject to
the terms and conditions of this Agreement, Shire shall have the
sole right to control the Commercialization of the Licensed
Products in the Field in the Shire Territory.
5.2 Diligence . Shire
shall use Commercially Reasonable Efforts to obtain Regulatory
Approval of, and to Commercialize, the Licensed Products in the
Field in the Shire Territory.
5.3 Territory Compliance
. Each Party shall use diligent efforts to take the actions
necessary to prevent importation or sales of Licensed Products sold
by such Party into the other Party’s Territory by a Third
Party, including any such actions as are determined by the JSC
under Section 3.1.1(c).
5.4 Bundling . [***] in
order to benefit sales or prices of other products offered for sale
by Shire to such customer or that discounts the price of the
Licensed Product disproportionately to the other products included
in such multiple product offering.
ARTICLE 6
CERTAIN OTHER ACTIVITIES
6.1 Label Expansions and New
Formulations within the Field .
6.1.1
Proposal to JSC . In the event that either Party (the
“ Developing Party ”) proposes to Develop
(a) a Licensed Product for a label expansion within the Field
(a “ Label Expansion ”) or (b) a new
pharmaceutical formulation containing a Compound for an indication
within the Field (a “ New Formulation ”),
such Party shall make a written proposal to the JSC for the
Development thereof, including a proposed work plan, budget,
timeline, any Third Party Technology under Section 10.6.2 and,
in the case of Shire, any formulation technology under Section
6.1.2(d)(iii) (the “ JSC Proposal Notice
”).
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-23-
(a)
Inclusion within Development Plan . If the JSC determines to
include such Label Expansion or New Formulation in an applicable
Development Plan or where applicable a new Development Plan, then
such Development Plan shall include the work plan, budget and
timeline proposed by the Developing Party, or as the JSC may
otherwise determine. For purposes of the JSC determination of
whether or not to include such Label Expansion or New Formulation
under the applicable Development Plan, the Developing Party shall
be deemed to have approved the proposal presented by it to the JSC
as part of the JSC Proposal Notice under Section 6.1.1
above.
6.1.2
Independent Projects .
(a)
Election . If the JSC does not determine to include such
Label Expansion or New Formulation under the applicable Development
Plan, then the Developing Party shall have the right, subject to
the Opt-In Right in Section 6.1.3 below, to Develop and
Commercialize such Label Expansion or New Formulation for such
Licensed Product outside the Development Plans solely in the
Developing Party’s respective Territory (subject to the
proviso in Section 2.1.3) at its own expense (it being
understood that Development Costs incurred in connection therewith
shall not be shared under Section 7.4.1 below), and such Label
Expansion or New Formulation of such Licensed Product shall be
referred to herein as an “ Independent Project
.” Notwithstanding the above, the Developing Party shall have
the right to conduct non-clinical Development of an Independent
Project anywhere, including, but not limited to, outside its
Territory.
(b)
Provision of Development Update . Upon request by the
non-Developing Party (the “ Non-Developing
Party ”), the Developing Party shall provide to the
Non-Developing Party a summary in reasonable detail of the
Development results to date pertaining to such Independent
Project.
(c)
Statement of Independent Development Costs .
(i) Prior
to sixty (60) days after the end of each calendar year of an
Independent Project, the Developing Party shall provide the
Non-Developing Party with a statement of the Independent
Development Costs (as defined below) for the prior year (each, a
“ Statement of Costs ”) for such
Independent Project.
(ii) As
used herein, “ Independent Development Costs
” shall mean those internal and external costs actually
incurred by the Developing Party outside the Development Plans that
are specifically allocable to the Development of the applicable
Independent Project. The allocation of such costs to an Independent
Project shall be determined in a manner consistent with the manner
in which costs are allocated to the Development Costs of Licensed
Products under the Development Plans. For such purposes, the
internal Development costs of the Developing Party shall be
determined by applying the FTE Rate applied under the Development
Plans for the same period.
(d)
License; Disclosure of Know-How . If a Label Expansion or
New Formulation is included in the Development Plan in accordance
with Section 6.1.1(a) above, or if the
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-24-
Non-Developing Party exercises the Opt-In Right with respect to an
Independent Project in accordance with Section 6.1.3 below,
the Developing Party shall promptly provide to the Non-Developing
Party Know-How Controlled by the Developing Party that is
necessary, useful or actually used to Develop such Label Expansion,
New Formulation or Independent Project and to Develop and
Commercialize such Licensed Product in accordance with this
Agreement. In such event:
(i) For
clarity, it is understood that the licenses granted to Shire under
Section 2.1 above include the Licensed Product comprising such
Label Expansion, New Formulation or Independent Project, as the
case may be; and
(ii) Subject
to Sections 6.1.2(d)(iii) and 10.6.2, Amicus shall have and is
hereby granted a license, under Shire IP, to use, import, sell and
Commercialize such Licensed Product in the Amicus Territory, and to
Develop and Manufacture such Licensed Product, including the right
to sublicense; provided, however, that Amicus shall not conduct any
clinical trial of such Licensed Product in the Shire Territory
without Shire’s consent (not to be withheld unreasonably). As
used herein, “Shire IP” shall mean (A) Know-How to
be disclosed to Amicus under this Section 6.1, and
(b) Patent Rights Controlled by Shire that are necessary or
actually used to Develop, Manufacture or Commercialize such
Licensed Product.
(iii) If
a New Formulation is to be licensed under Section 6.1.2(d)(ii)
above to Amicus and includes proprietary formulation technology
Controlled by Shire, then Amicus shall pay to Shire a royalty on
net sales of such New Formulation in the Amicus Territory pursuant
to such license, based on commercially reasonable terms; provided
that in the case of a New Formulation included in a Development
Plan pursuant to Section 6.1.1(a) above, such formulation
technology was generated or acquired by Shire (A) outside of
this Agreement or (B) as part of a different Independent
Project for which Amicus did not exercise its Opt-In Right under
Section 6.1.1(a) and Shire thereafter conducted clinical
Development. In addition such license shall be subject to
Section 10.6.2. If the Parties are unable to agree on the rate
and other terms of such royalty, the same shall be determined by
the JSC. In such event, if Shire Manufactures such New Formulation,
then Shire will supply such New Formulation to Amicus on reciprocal
terms as provided in Article 8 below; in each case, mutatis
mutandis. If the Parties are unable to agree on the application of
any such terms, the matter shall be determined by the JSC. If
Amicus’ proposal for the royalty rate and other terms is not
selected pursuant to Section 16.8, Amicus may revoke its exercise
of the Opt-In Right for such New Formulation and such Opt-In Right
for such New Formulation shall terminate as if not exercised.
6.1.3
Opt-In Right . In the case of an Independent Project, until
the end of the Opt-In Period (as defined below), the Non-Developing
Party shall have the right to opt-in for Development of the
(a) the Label Expansion within the Field with respect to the
particular Licensed Product in question and/or (b) the New
Formulation of a Licensed Product, as applicable, comprising such
Independent Project, as follows (the “ Opt-In
Right ”):
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-25-
(a)
Notice . The Developing Party shall notify the
Non-Developing Party of a submission of a request to a Regulatory
Authority of a Primary Market country for the first [***] for an
Independent Project, or the submission of the protocol for the
first Phase III Clinical Trial for an Independent Project to an
Institutional Review Board or Ethics Committee for approval,
whichever occurs first (the “ Opt-In Notice
”). As used herein, the “ Opt-In Period
” with respect to an Independent Project shall mean the
period beginning upon the date on which the Non-Developing Party
elected not to jointly Develop such Label Expansion or New
Formulation (as applicable) pursuant to Section 6.1.2(a) and
ending on ninety (90) days after the later of (x) first
[***] for such Independent Project or (y) the submission of
the protocol to such Institutional Review Board or Ethics Committee
for the first Phase III Clinical Trial of such Independent Project,
provided, that in the event (x) does not occur then upon
the dosing of the first patient in the first Phase III
Clinical Trial for such Independent Project. Notwithstanding the
foregoing, if so agreed by the Parties on a case-by-case basis, the
Opt-In Period may be extended and if extended, the Non-Developing
Party may exercise the Opt-In Right at such later time as is
mutually agreed upon by the Parties. The Opt-in Notice shall
include a good faith estimate of the date the Opt-In Period will
expire, and notwithstanding the foregoing, the Opt-In Period shall
not expire prior to such estimated date.
(b)
Know-How . Promptly after a request by the Non-Developing
Party made during the applicable Opt-In Period, the Developing
Party shall provide to the Non-Developing Party reasonable access
to the material Know-How of the Developing Party pertaining to such
Independent Project, and shall cooperate to enable the
Non-Developing Party to evaluate such Know-How, and Independent
Project, in a prompt and efficient manner. In addition the
Developing Party shall provide the Non-Developing Party safety data
required in accordance with the Pharmacovigilance Agreement or as
otherwise required by a governmental or a regulatory authority or
applicable Laws. The Developing Party shall similarly provide to
the Non-Developing Party promptly a statement of the total
Independent Development Costs incurred by the Developing Party in
performing such Independent Project. If additional Know-How is
generated, or Independent Development Costs incurred, during the
Opt-In Period after such request, the Developing Party shall
promptly make such information available to the Non-Developing
Party upon request to the extent necessary to enable the
Non-Developing Party to evaluate such Know-How and Independent
Project. Notwithstanding anything herein to the contrary, unless
the Non-Developing Party exercises its Opt-In Right under
Section 6.1.3 below with respect to such Independent Project,
the Non-Developing Party shall not have the right to use, and shall
not use, such Know-How or Data pertaining to such Independent
Project provided to it pursuant to this Section 6.1.2(b) other
than as safety data as allowed pursuant to the Pharmacovigilance
Agreement or as otherwise required by a governmental or a
regulatory authority or applicable Laws.
(c)
Exercise . To exercise the Opt-In Right with respect to an
Independent Project, the Non-Developing Party shall deliver, prior
to the expiration of the Opt-In Period for such Independent
Project, written notice to the Developing Party of such exercise
and shall promptly reimburse the Developing Party for the
Non-Developing Party’s Reimbursable Share (as defined below)
of the Independent Development Costs incurred by the Developing
Party in performing such Independent Project (through the date of
such exercise). For such purpose, the Non-Developing
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-26-
Party’s “ Reimbursable Share ”
shall mean [***] of the Independent Development Costs for
the Independent Project. In the event of a dispute as to the
calculation of Independent Development Costs to be reimbursed, the
Non-Developing Party shall promptly reimburse the Developing Party
the amount described above with respect to any undisputed
Independent Development Costs, and shall promptly reimburse any
remainder (or if applicable the Developing Party shall promptly
refund any amounts that were so paid but subsequently found not to
be due) upon resolution of such dispute by the JSC and in the event
that the JSC is unable to resolve such dispute, the matter shall be
resolved by an audit in accordance with provisions of
Sections 7.8.2 and 7.8.3. For purposes of clarity, the
Non-Developing Party shall be the Auditing Party in accordance with
Section 7.8.2.
6.1.4
Further Development and Commercialization of Independent
Projects .
(a)
Generally . If the Non-Developing Party does not exercise
its Opt-In Right for an Independent Project during the Opt-In
Period, then the Developing Party shall have the right to continue
the Development and Commercialization of such Independent Project
solely in its respective Territory (subject to the proviso in
Section 2.1.3), provided the Developing Party shall have the
right to conduct non-clinical Development anywhere, including, but
not limited to, outside its Territory. It is understood that Net
Sales of Licensed Products in the Shire Territory resulting from
such Label Expansion or New Formulation shall be included in Net
Sales calculations for purposes of Sections 7.2.2 and 7.3
below.
(b)
Clinical Trials . The conduct of clinical trials as part of
an Independent Project shall be subject to Section 4.3.2
above.
(c)
Manufacturing . If Shire elects to Develop and Commercialize
a New Formulation as an Independent Project, Amicus will supply to
Shire in accordance with Article 8 below additional quantities
of the applicable Compound for use in such New Formulation. Unless
otherwise agreed, however, Amicus will not be required to arrange
for supplies of final formulated Licensed Products incorporating
such New Formulation, and Shire shall have the right to Manufacture
and have Manufactured such supplies of final formulated Licensed
Products incorporating such New Formulation.
6.1.5
Activities Outside the Field . The application of
Sections 6.1.1–6.1.4 is limited to activities within the
Field with respect to the Licensed Products. In this regard nothing
herein shall be deemed to grant to Shire the right to Develop or
Commercialize Licensed Products (including New Formulations)
outside the Field. The Parties may discuss from time to time
expanding the Field to include indications outside the Field for a
given Compound or Licensed Product, and if the Parties so agree,
then the Field shall be deemed to include such additional
indication with respect to Licensed Products containing such
Compound. Unless so agreed, however, during the Term
(a) Amicus shall not, directly or indirectly, Develop (other
than as a Licensed Product in accordance with this Agreement) or
Commercialize in the Shire Territory a product containing a
Compound other than an [***] for [***]’s and (b) Shire
shall not outside the Field, directly or indirectly, Develop or
Commercialize in the Shire Territory a product containing a
Compound,. Subject to (a) Sections 6.2.1 and 6.2.2,
Amicus may, directly and/or indirectly,
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-27-
Develop
or Commercialize an [***] for [***]’s in the Shire Territory
and (b) Section 4.3.2, Amicus may, directly and/or
indirectly, Develop outside the Field a product containing a
Compound in the Shire Territory for Commercialization in the Amicus
Territory.
6.2 [***] for
[***]’s .
6.2.1
[***]’s Option . Subject to Section 6.2.1(e)
below, Shire shall have and Amicus hereby grants to Shire an option
to expand the Field with respect to products containing
[***] as set forth below in this Section 6.2.1 (the
“ [***]’s Option ”).
(a)
Notice . Upon the scheduling of the first [***] with respect
to an [***] for [***]’s, Amicus shall notify Shire in
writing. Promptly following such [***] with respect to an [***] for
[***]’s, Amicus shall provide to Shire written notice of such
[***], together with the data package submitted by Amicus to the
FDA for purposes of such [***] (the “ [***]’s
Option Notice ”). Shire shall have the right to
exercise the [***]’s Option within sixty (60) days after
its receipt of the [***]’s Option Notice (the “
[***]’s Option Period ”) by providing
written notice to Amicus of such intent to exercise the
[***]’s Option. Amicus shall promptly provide Shire any
additional Data or information (e.g. minutes of the [***] and
response letter from the FDA with respect to the [***]) that it has
after providing the [***]’s Option Notice up to the exercise
or expiration of the [***]’s Option. For purposes of clarity,
Amicus shall not grant to a Third Party any license or other rights
to Commercialize an [***] for [***]’s in the Shire Territory
prior to the expiration of the [***]’s Option Period and
further subject to Section 6.2.2 below.
(b)
Exercise . Upon exercise of the [***]’s Option within
the [***]’s Option Period and payment of the exercise fee
(the “ [***]’s Option Exercise Fee
”) within ten (10) Business Days [***], the Field with
respect to [***] (and any other [***] for
[***]’s) shall be deemed to include the diagnosis, treatment
and/or prevention of [***]’s and the JDC shall promptly
propose, for approval by the JSC, modifications to the applicable
Development Plan to include Development of such [***] for
[***]’s. Following exercise of the [***]’s Option,
Amicus shall continue performing further activities related to the
Development of such an [***] for [***]’s in accordance
with its own Development plans for a period of up to one
(1) year after exercise of the [***]’s Option, or until
such earlier time as the JSC approves such a Development Plan
therefor, and thereafter the further Development of such [***] for
[***]’s shall be conducted in accordance with such
Development Plan, as modified by the JSC from time to time. All
costs reasonably incurred by Amicus in performing such activities
(i.e., those after the exercise of the [***]’s Option but
prior to the JSC’s establishment of a modified Development
Plan), and those conducted pursuant to the modified Development
Plan so established, shall be shared in accordance with
Section 7.4.1 below.
(c)
[***]’s Option Exercise Fee and Milestone Payments .
In the event Shire exercises the [***]’s Option in accordance
with the foregoing, [***] to be made by Shire with respect to the
Development and Commercialization of Licensed Products for
[***]’s hereunder. It is understood that the amount of such
[***]’s Option Exercise Fee and milestone payments shall
[***].
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-28-
(d)
Cooperation . From the Effective Date until the end of the
[***]’s Option Period, Amicus shall keep Shire informed of
Amicus’ progress in Developing [***] for [***]’s and
shall cooperate with Shire to facilitate Shire’s
understanding of the [***] for [***]’s, including, but not
limited to, providing access to all Data generated regarding [***]
for [***]’s promptly upon Shire’s written
request.
(e)
Amicus’ Election Not to Proceed . If, prior to the
[***]’s Option Notice, Amicus notifies Shire in writing that
it has made the election not to further Develop for and/or seek
Regulatory Approval for Commercialization in the Shire Territory,
or Commercialize, an [***] for [***]’s in the Shire
Territory, the [***]’s Option, and this Section 6.2.1,
shall terminate and not apply; provided, that if Amicus makes such
election under this Section 6.2.1(e), Amicus shall not
(directly or indirectly) Commercialize an [***] for [***]’s
in the Shire Territory (for so long as [***] is a Compound
hereunder).
6.2.2
Right of First Refusal . Amicus hereby grants to Shire a
right of first refusal to Develop and exclusively Commercialize one
or more [***] for [***]’s in the Shire Territory as set forth
below in this Section 6.2.2 (the “ Right of First
Refusal ”).
(a)
Procedure . Prior to granting to a Third Party a license or
other rights to Commercialize an [***] for [***]’s in the
Shire Territory, Amicus shall so advise Shire in writing setting
forth the terms and conditions under which Amicus would grant such
rights (an “ Offer ”) and including a
copy of the proposed definitive agreement to grant such rights to
Shire (a “ Right of First Refusal Notice
”). [***] of the date of the Right of First Refusal
Notice (the “ RFR Acceptance Period ”),
Shire shall notify Amicus in writing whether Shire desires to enter
into the transaction in the Right of First Refusal Notice in
accordance with the terms set forth therein, together with a fully
executed copy of the definitive agreement included in such Right of
First Refusal Notice (a “ RFR Acceptance
”). In the event that Shire shall have failed to deliver a
RFR Acceptance [***] , then Shire shall be deemed to have
waived its Right of First Refusal under this Section 6.2.2,
and Amicus shall be free to execute and close on the Offer with a
Third Party solely on the terms provided in the Right of First
Refusal Notice (which for purposes of clarity shall mean the
execution by a Third Party of the definitive agreement offered to
Shire with such non-substantive changes as are necessary to
substitute such Third Party for Shire); provided that if such
definitive agreement is not consummated within [***] after
the end of the RFR Acceptance Period, or if, during such
[***] period Amicus proposes to grant to a Third Party
rights to Commercialize an [***] for [***]’s on terms that
are different than those set forth in the Offer (any terms
different than those provided in the definitive agreement offered
to Shire), Amicus shall be obligated to follow the procedures set
forth in this Section 6.2.2 prior to granting to a Third Party
any right or license to Commercialize an [***] for
[***]’s.
(b)
No Implied Obligations . The only obligations of Amicus
under this Section 6.2.2 and Section 6.2.1 above are as
expressly stated therein, and there are no further implied
obligations relating to the matters contemplated therein. Without
limiting the foregoing, it is understood that (i) Amicus is
not obligated to identify the Third Party(ies) to whom Amicus
would
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-29-
grant
rights to [***] for [***]’s, (ii) modifications or
improvements may be made to such [***] after the date of the Right
of First Refusal Notice and (iii) a transfer of rights in
connection with an assignment of this Agreement in accordance
with Section 16.1 below shall not be subject to this
Section 6.2.2, provided, that this Section 6.2.2 shall
apply to such assignee.
(c)
Termination . Section 6.2.2 shall terminate for all
purposes upon the first grant to a Third Party by Amicus of rights
to Commercialize an [***] for [***]’s in accordance with this
Section 6.2.2; and in any case this Section 6.2
(including both Sections 6.2.1 and 6.2.2 but not
Section 6.2.1(e)) shall expire [***] after the First
Commercial Sale of [***] (or, if earlier, another Licensed
Product containing [***] ) within the Field in a Primary
Market country in the Shire Territory, after which time Amicus
shall have no further obligation and Shire shall have no further
rights under this Section 6.2.
6.3 Related Products
.
6.3.1
Related Product Notice . At least thirty (30) days
prior to dosing the first patient in the first human clinical trial
of a Related Product within the Field, Amicus shall notify Shire in
writing, which notice shall include a copy of the IND submitted to
the FDA or other applicable Regulatory Authority for such trial (a
“ Related Product Notice ”), subject to
Section 6.3.6. For purposes hereof, “ Related
Product ” is defined as a small molecule that
selectively binds to the active site of (a) a-galactosidase A
for the treatment or prevention of Fabry Disease,
(b) b-glucocerebrosidase for the treatment or prevention of
Gaucher Disease, (c) a-glucosidase for the treatment or
prevention of Pompe Disease or (d) to the extent the Parties
agree pursuant to Section 6.1.5 to expand the Field for a
Compound and agree to add an additional target for such Compound,
such other target for such indication, and in each such case whose
primary therapeutic activity results from such selective binding,
provided, that the restrictions of this Section 6.3 shall not
apply to [***] for [***]’s or a Licensed Product being
Commercialized pursuant to this Agreement. Each of the enzymes
referenced under clauses (a), (b), (c) and (d) of
this Section 6.3.1 is referred to herein as a “
Target .”
6.3.2
Related Product Opt-In Right . Shire shall have the right,
exercisable [***] after receiving the Related Product Notice
(the “ Related Product Opt-In Period ”),
to designate that (a) the active pharmaceutical ingredient of
such Related Product shall be added as a Compound hereunder,
(b) the formulation described in the IND included in the
Related Product Notice shall be added as a Licensed Product
hereunder and (c) the Field with respect to such Licensed
Product shall be limited to the specific disease for which such
Related Product is being developed (i.e., Gaucher Disease, Fabry
Disease or Pompe Disease or such other indication as is then
included in the Field under Section 6.1.5, as applicable) (the
“ Related Product Opt-In Right ”).
6.3.3
Exercise . To exercise the Related Product Opt-In Right with
respect to a Related Product, Shire shall deliver written notice to
Amicus of such exercise within the Related Product Opt-In Period
for such Related Product, and shall promptly reimburse Amicus for
[***] of the costs incurred by Amicus outside the
Development Plans that are specifically attributable to the
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-30-
Development of such Related Product prior to such exercise,
determined in accordance with Section 6.5.4.
6.3.4
Development Plan . Upon such timely exercise of the Related
Product Opt-In Right, the JDC and JSC shall promptly establish a
new Development Plan for such Related Product (i.e., as a Licensed
Product).
6.3.5
Milestone Payments and Royalties . Following exercise of the
Related Product Opt-In Right, Shire shall pay to Amicus royalty
payments under Section 7.3 with respect to such Related
Product as a Licensed Product. In addition, Shire shall pay to
Amicus an additional set of Milestone payments for such Related
Product, in an amount equal to [***] of the amounts for the
achievement of the same events as provided for the first Licensed
Product Developed for the same Field under Section 7.2.1,
provided, that such payments shall not be due until the first
Regulatory Approval of the first Licensed Product for the same
disease within the Field as that of such Related Product. For
clarity, upon Regulatory Approval of the first Licensed Product in
a particular Field, payments for Milestones (as provided in this
Section) for a Related Product previously achieved shall be due to
Amicus.
6.3.6
Related Products to be Commercialized Solely in the Amicus
Territory . Notwithstanding the foregoing, the Related Product
Opt-In Right shall not apply with respect to a particular Related
Product that Amicus elects to Commercialize solely in the Amicus
Territory throughout the Term. Accordingly, if Amicus notifies
Shire in writing that it has made the election not to Commercialize
such Related Product in the Shire Territory, the Related Product
Opt-In Right, and this Section 6.3, shall not apply to such
Related Product; provided that if Amicus makes such election under
this Section 6.3.6, Amicus shall not Commercialize such
Related Product (for so long as the same remains a Related Product)
in the Shire Territory prior to the end of the [***] period
following Regulatory Approval in the Shire Territory of the first
Licensed Product for such disease within the Field.
6.4 Termination by JSC; Back-Up
Compounds . The JSC may, from time to time, terminate the
Development of a Licensed Product for the Shire Territory or the
Amicus Territory , in accordance with Section 6.4.1.
6.4.1
Termination of Development in Shire Territory or Amicus
Territory . If, at the request of a Party (the “
Requesting Party ”), the JSC determines that it
is not commercially reasonable to continue to Develop and/or to
Commercialize a Licensed Product in the Requesting Party’s
Territory (regardless of whether it is commercially reasonable to
do so in the other Party’s Territory), then such Licensed
Product shall be terminated in the Requesting Party’s
respective Territory (i.e., the Shire Territory if Shire is the
Requesting Party and the Amicus Territory if Amicus is the
Requesting Party). Upon such termination:
(a) If
such termination is with respect to the Amicus Territory only,
then: (i) the Licensed Product that was the subject of such
termination shall remain a Licensed Product for all purposes of
this Agreement and shall not revert to Amicus by reason of such
termination, and the
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-31-
provisions of Sections 6.4.2 and 6.4.3 shall not apply with
respect to such termination; (ii) Shire shall have the right
to continue Developing and to Commercialize such Licensed Product
as an Independent Project outside the Development Plans in the
Shire Territory at its own expense (which costs shall not be shared
under Section 7.4.1); (iii) Amicus’ obligations
under Sections 4.1 and 4.2, and under the Development Plan for
such Licensed Product (to the extent such Development Plan applies
to such Licensed Product), shall terminate, subject to Amicus using
Commercially Reasonable Efforts to transition any such Development
activities that relate to Development and/or Commercialization of
such Licensed Product in the Shire Territory to Shire; and
(iv) Amicus’ obligation to supply such Licensed Product
under Article 8 shall terminate on the second anniversary of
such termination or such earlier date as Shire establishes an
alternative source of supply for such Licensed Product, during
which period Amicus shall cooperate reasonably to transition to
Shire or its designee the Manufacture of such Licensed Product. In
the event of termination for the Amicus Territory only under this
Section 6.4.1(a), Amicus shall not Develop or Commercialize
such Licensed Product or the Compound contained therein anywhere in
the Territory during the remaining Term for so long as the same
remains a Licensed Product; or
(b) If
such termination is with respect to the Shire Territory, then such
Licensed Product shall cease to be a Licensed Product and the
provisions of Sections 6.4.2, 6.4.3 and 6.4.4 shall apply (in
which case such Licensed Product shall be deemed a Terminated
Product), and Shire shall use Commercially Reasonable Efforts to
transition any Development activities that relate to
Commercialization of such Licensed Product in the Amicus Territory
to Amicus. For clarity, Shire shall have no further obligations
under this Agreement with respect to such Licensed Product under
Sections 4.1 and 4.2, the Development Plan for such Licensed
Product, and Article 5.
6.4.2
Intentionally Omitted.
6.4.3
Reversion .
(a) In
the event a Licensed Product ceases to be a Licensed Product
pursuant to Section 6.4.1(b) or 7.2.5, or
Section 15.3.2, (i) such Licensed Product shall be deemed
a “Reverted Product” under Section 15.5.2,
(ii) the Compound contained therein shall cease to be a
Compound for all purposes of this Agreement to the extent no other
Licensed Product containing such Compound is actively being
Developed (including clinical Development) or Commercialized by
Shire hereunder, (iii) Shire shall have no further rights
under Section 4.3.2 with respect to clinical trials involving
such Licensed Product, (iv) Amicus shall have no further
obligations under Article 8 with respect to such Licensed
Product, (v) Shire shall have no further prosecution,
maintenance and enforcement rights under Sections 10.2 and
10.3 with respect to Patent Rights specifically directed to such
Licensed Product, (vi) Shire shall have no further rights
under Section 14.5 with respect to such Licensed Product, and
(vii) the provisions of Sections 15.5.2(a), (c),
(d), (e), (f), (g) and (h) shall then apply with respect to
such Licensed Product as if this Agreement had terminated under
Section 15.3.1. For clarity, Shire shall have no further
obligations under this Agreement with respect to such Licensed
Product under Sections 4.1 and 4.2, the Development Plan for
such Licensed Product, and Article 5.
[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
-32-
(b) In
addition, subject to subsection (iv) below, in the event of
such reversion:
(i) with
respect to Amigal, then Fabry Disease (plus any additional
indication for DGJ included within the Field pursuant to
Section 6.1.5) shall thereafter be excluded from the
definition of Field; and the compounds and products described in
Section 6.3.1(a) shall cease to be Related Products;
(ii) with
respect to Plicera, then Gaucher Disease (plus any additional
indication for [***] included within the Field pursuant to
Section 6.1.5 or Section 6.2) shall thereafter be
excluded from the definition of Field; the obligations under
Sections 6.2.1 and 6.2.2 shall terminate; and the compounds
and products described in Section 6.3.1(b) shall cease to be
Related Products; and
(iii) with
respect to AT2220, then Pompe Disease (plus any additional
indication for DNJ included within the Field pursuant to
Section 6.1.5) shall thereafter be excluded from the
definition of Field; and the compounds and products described in
Section 6.3.1(c) shall cease to be Related Products; in each
of subsections (i) and (ii) above and this
subsection (iii), for all purposes of this Agreement.
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