Contingent additional milestone payment

[Table of Contents](#ie9658fba2baf4e3799b1175f69eaed46_7)BIOGEN INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited, continued)A summary of development expense related to this collaboration is as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | For the Three Months Ended March 31, |  |  |
| (In millions) |  | 2022 |  | 2021 |  |  |  |  |
| Total Denali collaboration development expense |  | $ | 14.9  |  |  | $ | 15.4  |  |  |  |  |  |
| Biogen's share of Denali development expense reflected in research and development expense in our condensed consolidated statements of income |  | 8.9  |  |  | 9.2  |  |  |  |  |  |

Sangamo Therapeutics, Inc.In February 2020 we entered into a collaboration and license agreement with Sangamo to develop and commercialize ST-501 for tauopathies, including Alzheimer's disease; ST-502 for synucleinopathies, including Parkinson’s disease; a third neuromuscular disease target; and up to nine additional neurological disease targets to be identified and selected within a five-year period. The companies are leveraging Sangamo’s proprietary zinc finger protein technology delivered via adeno-associated virus to modulate the expression of key genes involved in neurological diseases. Under this collaboration, we may pay Sangamo tiered royalties on potential net sales of any products developed under this collaboration in the high single digit to sub-teen percentages.A summary of development expense related to this collaboration is as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | For the Three Months Ended March 31, |  |  |
| (In millions) |  | 2022 |  | 2021 |  |  |  |  |
| Total Sangamo collaboration development expense |  | $ | 8.3  |  |  | $ | 4.8  |  |  |  |  |  |
| Biogen's share of Sangamo development expense reflected in research and development expense in our condensed consolidated statements of income |  | 5.5  |  |  | 4.2  |  |  |  |  |  |

InnoCare Pharma LimitedIn July 2021 we entered into a collaboration and license agreement with InnoCare Pharma Limited (InnoCare) for orelabrutinib, an oral small molecule Bruton’s tyrosine kinase inhibitor for the potential treatment of MS. Orelabrutinib is currently being studied in a multi-country, placebo-controlled Phase 2 trial in relapsing-remitting MS. Under the terms of the collaboration, we have exclusive rights to orelabrutinib in the field of MS worldwide and certain autoimmune diseases outside of China (including Hong Kong, Macau and Taiwan), while InnoCare retains exclusive worldwide rights to orelabrutinib in the field of oncology and certain autoimmune diseases in China (including Hong Kong, Macau and Taiwan). In connection with the closing of this transaction in August 2021 we made an upfront payment of $125.0 million that was recorded as research and development expense in our condensed consolidated statements of income. We may also pay InnoCare up to approximately $812.5 million in potential development milestones and potential commercial payments should this collaboration achieve certain development, commercial milestones and sales thresholds. In addition, we may pay InnoCare tiered royalties on potential net sales of any products developed under this collaboration in the low to high teen percentages.Other Research and Discovery ArrangementsThese arrangements may include the potential for future milestone payments based on the achievement of certain clinical and commercial development payable over a period of several years.OtherFor the three months ended March 31, 2022, we recorded $19.5 million as research and development expense in our condensed consolidated statements of income related to other research and discovery related arrangements, compared to less than $1.0 million in the prior year comparative period.Samsung Bioepis Co., Ltd.Joint Venture AgreementIn February 2012 we entered into a joint venture agreement with Samsung BioLogics establishing an entity, Samsung Bioepis, to develop, manufacture and market biosimilar products. As of March 31, 2022, our ownership percentage was approximately 49.9%.32
