In August 1984, Amgen Corporation and Memorial Sloan-Kettering Cancer Center or MSKCC initiated an exploratory collaborative research program.  Participation in the program guaranteed MSKCC the opportunity to negotiate a license for the use of any inventions or technologies developed as a result of the collaboration.  Eighteen months later, MSKCC and Amgen entered into a license agreement for the use of patented technologies for the development of Neupogen® and Neulasta®, creating a royalty interest for MSKCC on these products. 

In January 2004, Royalty Pharma acquired a portion of MSKCC’s U.S. royalty interest in Neupogen® and Neulasta®.  The transaction involved an upfront cash payment, equity in Royalty Pharma, and additional payments by Royalty Pharma if yearly sales exceed certain specific amounts.

This transaction enabled MSKCC to retain an interest in the product by selling only a portion of the royalty interest, while materially diversifying the institution’s assets.  For an institution such as MSKCC that is dedicated to innovative research, patient care and education, the sale provided vital funding for other research opportunities.