Amgen buys licensing rights from Kyowa Hakko

NEW YORK, March 5 (Reuters) - U.S. biotech company Amgen Inc (AMGN.O) agreed to pay Japan's Kyowa Hakko Kogyo Co Ltd (4151.T) up to $520 million for the rights to a potential new drug, the companies said.

Amgen will make Kyowa Hakko an upfront payment of $100 million for an exclusive license to develop and commercialize Kyowa Hakko's humanized monoclonal antibody KW-0761 worldwide, except in Japan, Korea, China and Taiwan.

Kyowa Hakko could receive up to $420 million in additional payments, if the company meets development, approval and sales milestones.

The Japanese biotech company will also be entitled to receive royalties on sales.

KW-0761 is currently being studied in inflammation and oncology settings.

Amgen said its forecast for 2008 earnings will remain unchanged by this transaction. (Reporting by Chris Reiter; editing by Carol Bishopric)