Astellas Pharma Inc

In December 2009, we entered into a worldwide agreement with Astellas Pharma Inc. to jointly research, develop and commercialize FLT3 kinase inhibitors in oncology and non-oncology indications. This partnership includes quizartinib (formerly AC220) and other undisclosed FLT3 kinase inhibitors. Under terms of the agreement Ambit received an up-front cash payment of $40 million, and will be eligible to receive pre-commercialization milestone payments of up to $350 million, commercial milestones and tiered royalty payments calculated as a percentage of net sales of licensed products. The agreement includes a five-year joint research program related to the preclinical development of certain designated follow-on compounds to quizartinib. Ambit and Astellas share equally the development costs in the United States and European Union, and research costs for the follow-on compounds. Astellas is solely responsible for development costs outside the United States and European Union and 100% of worldwide commercialization costs. However, Ambit retains an option within the United States to co-promote any product licensed to Astellas under the agreement, foregoing royalties on sales in the US in exchange for a 50% share of US profits or losses.