Collaborations

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Collaborations

Collaborations

On January 2, 2020, we closed our strategic collaboration with BeiGene, Ltd. (BeiGene) to expand our oncology presence in China. Under the collaboration, BeiGene commenced selling XGEVA® and will commercialize KYPROLIS® and BLINCYTO® (blinatumomab) in China, and Amgen will share profits and losses equally during the initial product-specific commercialization periods; thereafter, product rights may revert to Amgen, and Amgen will pay royalties to BeiGene on sales in China.

In addition, we will jointly develop a portion of our oncology portfolio with BeiGene sharing in global research and development (R&D) costs by providing cash and development services up to $1.25 billion. Upon regulatory approval, BeiGene will assume commercialization rights in China for a specified period, and Amgen and BeiGene will share profits equally until certain of these product rights revert to Amgen. Upon return of the product rights, Amgen will pay royalties to BeiGene on sales in China for a specified period. For product sales outside of China, Amgen will also pay BeiGene royalties.

For the three and nine months ended September 30, 2020, net costs recovered from BeiGene for oncology product candidates were $57 million and $169 million, respectively, and were recorded as an offset to R&D expense in the Condensed Consolidated Statements of Income. Profit share payments and product sales between Amgen and BeiGene were not material for the three and nine months ended September 30, 2020. As of September 30, 2020, the amount owed from BeiGene for net costs recovered was $112 million, which is included in Other current assets in the Condensed Consolidated Balance Sheets. In connection with this collaboration, we acquired an ownership interest in BeiGene. See Note 6, Investments.