Amgen Terminates Research With Sugen

Amgen Inc. reached an agreement to cut off its four-year collaborative research project with Sugen Inc. a year early.

Amgen, the large biotechnology company based in Thousand Oaks, struck a deal with Redwood City-based Sugen in 1992 to research neurological disorders in hopes of developing new drugs.

But Amgen’s chief executive, Gordon Binder, said that “Amgen’s research priorities . . . have changed over the last three years, so this early conclusion makes sense for Amgen.”

As part of the settlement, Amgen will make a final $2.5-million payment to Sugen and grant Sugen exclusive rights to various research done during the collaboration, with royalty payments due Amgen if any products are developed. Also, Sugen will buy back 235,000 shares of its stock from Amgen at $11.48 per share, which reduces Amgen’s holdings in Sugen to 153,000 shares.

Amgen will also pay Sugen $200,000 for a seven-year warrant to purchase 200,000 shares of stock at $15 per share.