By Mary Welch

Bioject Medical Technologies Inc. entered into a development and supply agreement with Amgen Inc. for delivery of Amgen's products with Bioject's Iject needle-free injection system.

Amgen, of Thousand Oaks, Calif., will receive an exclusive license to the Iject technology for two undisclosed indications. It also has the option to further license the technology for other Amgen products for other indications.

Amgen made a $1.5 million equity investment in Portland, Ore.-based Bioject. Bioject would not say how many shares Amgen purchased or at what price. However, it currently has 5.9 million shares outstanding.

In addition, Amgen will make up to $3.1 million in future payments to Bioject, including licensing payments linked to developmental milestones, option payments to use other Amgen drugs and payments to support ongoing product development, clinical supplies and tooling expenses. On top of that, the two firms outlined a potential future commercial supply agreement under which Bioject would provide Amgen with a customized Iject system.

"This is a significant agreement for us because Amgen is such a leader in the biotechnology field," said Chris Farrell, Bioject's controller. "If Amgen is looking at needle-free, prefilled delivery devices, then other companies will look at us as well."

The Iject system is still under development. It is conceived as a single- or a multiple-use needle-free device. The device will include a pre-filled syringe of a particular drug and could be administered in a professional setting or at home, she said.

Since the Iject comes with the drug, a marketing license will have to be filed for each drug indication, Farrell said.

"We expect to be on the market in the next couple of years," she said. "We're not sure when we'll file the first license or when we'll file for Amgen's products. Even if we file this year, which I'm not sure we'll do, we wouldn't expect it to be approved this year, given the lengthy approval process. We're not sure when we'll file."

Bioject has two marketed products, the Biojector 2000 and the Vitajet 3. The company's needle-free injection works by forcing medication at a high speed through a tiny orifice held against the skin. The resulting stream of fluid penetrates the skin and deposits the medication in the tissue.

Bioject's stock (NASDAQ:BJCT) closed Wednesday at $17.375, down $2.625.