Legal dispute between Novartis and Amgen relating to migraine collaboration.

Novartis announced that there is a legal dispute with Amgen regarding the collaboration agreements in the field of migraine. On April 2, 2019, Amgen issued a notice of termination of its migraine collaboration agreements with Novartis based on an alleged material breach of the collaboration agreements. Novartis disputes the notice vigorously.

In order to prevent an unjustifiable attempt by Amgen to end the collaboration, Novartis has filed a lawsuit asking the court to confirm that Amgen has no right to terminate the agreements. The agreements will remain in force unless and until a final and binding court decision is pronounced that terminates the agreements.

Comment: The basis of the claim from Amgen is that Novartis agrred to enter into a manufacturing contract with Alder BioPharmaceuticals, which is developing a potential rival to Aimovig which according to Amgen violates the contract the two companies signed in 2015 to co-develop and co-commercialize Aimovig in the U.S. Novartis counterclaimed that Amgen is trying back out of their partnership and retain all the profits from the drug's sales.