Biogen Idec Inc. agreed to sell worldwide rights of its commercially disappointing psoriasis biologic, Amevive, to Astellas Pharma US Inc. in exchange for $60 million plus royalties.

The deal is part of Biogen's restructuring strategy, initiated last fall to concentrate resources on its development pipeline. The Cambridge, Mass.-based company decided to cut about 17 percent of its staff and divest certain assets, including Amevive, in an effort to reduce annual operating expenses by between $200 million and $300 million. (See BioWorld Today, Sept. 12, 2005.)

"Since that time, we've been talking and communicating with several potential buyers," said Jose Juves, Biogen spokesman. "We signed an agreement Friday for Astellas to get global rights [to Amevive] in all indications."

Specific terms of the royalty agreement were not disclosed. Biogen agreed to continue manufacturing the compound at its facility in Research Triangle Park, N.C., Juves said.

The deal is expected to close by the middle of the month.

"This will allow us to focus our resources on activities in areas where we have a significant competitive advantage," Juves said.

Approved in early 2003, Amevive (alefacept) was the first biologic on the market to treat moderate to severe chronic plaque psoriasis, a condition that affects about 1.2 million people in the U.S. Biogen's compound is administered through once-weekly intramuscular injections for 12 doses.

At the time of its approval, some analysts projected big numbers for Amevive, estimating annual sales of between $200 million and $400 million by 2005. But fierce competition in the psoriasis market and the rapid uptake of other drugs, particularly the top-selling anti-TNF therapies - Enbrel (etanercept) by Thousand Oaks, Calif.-based Amgen Inc.; Remicade (infliximab) by Malvern, Pa.-based Centocor Inc.; and Humira (adalimumab) by Abbott Park, Ill.-based Abbott Laboratories - barred Biogen's drug from cornering a significant market share.

Fourth-quarter 2005 sales of Amevive totaled $12.5 million, and sales for the full year were $48.5 million.

As a comparison, Amgen's Enbrel, approved for psoriasis in 2004, brought in $674 million for the last three months of 2005, and $2.6 billion for the full year.

Representatives of Astellas could not be reached for comment, though the company said in a press release that it intends to incorporate Amevive into its North American dermatology franchise. Astellas, based in Tokyo with a U.S. subsidiary in Deerfield, Ill., plans to "continue offering physicians this effective option for the treatment of moderate to severe plaque psoriasis," said William Fitzsimmons, senior vice president of business development at Astellas Pharma US.

Funds from the Amevive sale likely will be put into Biogen's research and development activities. The company has a number of clinical trials ongoing in cancer, neurology and immunology, and is awaiting an FDA decision on the multiple sclerosis drug Tysabri (natalizumab), which Biogen and partner Elan Corp. plc, of Dublin, Ireland, voluntarily pulled from the market last year after the drug was linked to progressive multifocal leukoencephalopathy, a potentially fatal disorder.

An FDA advisory committee last month recommended the product's return to market. The agency has until June 28 to take action. (See BioWorld Today, March 9, 2006.)

In separate news, Biogen reported positive data from a long-term study of its multiple sclerosis drug, Avonex, in patients who began taking the drug immediately after their initial MS attack. Results from the CHAMPIONS (Controlled High Risk Avonex Multiple Sclerosis Prevention Study In Ongoing Neurological Surveillance) study showed that the drug delayed the risk of patients developing clinically definite MS for up to five years. The 203 patients in the study had suffered an initial MS attack and were considered at risk of suffering additional attacks due to the presence of brain MRI scan abnormalities.

Data from that study were published in the March 2006 issue of Neurology.

Shares of Biogen (NASDAQ:BIIB) closed at $46.08 Tuesday, down 26 cents.