Bristol-Myers Squibb and Otsuka Pharmaceutical Co., Ltd. have extended the U.S. portion of their development and commercialization agreement for Abilify (aripiprazole), which was scheduled to end in November 2012, until the drug’s expected loss of exclusivity in April 2015. The companies have also established an oncology collaboration for two BMS products, Sprycel (dasatinib) and Ixempra (ixabepilone).

Under terms of the agreement, Otsuka will receive an up-front cash payment of $400 million. Beginning in January 2010, BMS’ share of Abilify’s U.S. sales will drop from 65% to 58% and then 53.5% for 2011, and 51.5% for 2012. During this period Otsuka will be responsible for 30% of commercialization expenses for Abilify (compared to having no responsibility under the existing collaboration agreement). Beginning in January 2013, and through the expected loss of U.S. exclusivity in 2015, BMS will receive 50% of sales until a $2.7 billion threshold, and a declining tiered share of sales above $2.7 billion. Otsuka will be responsible for 50% of commercialization expenses during this period.

Under the Sprycel and Ixempra collaboration, Otsuka will share in commercial expenses for the U.S., Europe and Japan and co-promote Sprycel with BMS in the U.S., Japan and major EU markets beginning in 2010. Otsuka will receive a collaboration fee on aggregate annual net sales of Sprycel and Ixempra beginning in 2010 on a regressive tier basis through 2020.

“The announcement today is further evidence that Bristol-Myers Squibb is delivering on its commitments to advance its transformation to a leading next-generation biopharma,” said Lamberto Andreotti, president and chief operating officer, Bristol-Myers Squibb. “The agreement with our long-standing and valued collaborator Otsuka will help build our earnings base for 2013 and transition us to an expected period of growth in 2014 and beyond. Further, our balance sheet remains strong, which allows us to pursue business development opportunities as part of our String of Pearls strategy.