Mitsubishi Tanabe Pharma Corporation announced that Biogen Inc. and the company reached to termination of the license agreement on MT-1303, a therapeutic agent for autoimmune diseases, discovered and developed by the company. The company has been conducting clinical trials for MT-1303 for multiple sclerosis, psoriasis, Crohn's disease and systemic lupus erythematosus and, in order to accelerate development of this drug and to launch the drug as soon as possible and to maximize its product value, it concluded the license agreement with Biogen in September 2015. In accordance with this agreement, the company granted Biogen the exclusive right to develop and market this drug globally, except in Japan and Asia. The company had a right to participate in Biogen's global clinical trials as well as a co-promotion right in the U.S. in non-multiple sclerosis indications. Also, the company received an upfront payment of $60 million from Biogen. In October 2016, Biogen announced to discontinue its development plan for MT-1303 due to its strategic objectives. Responding to that decision, Biogen and the company started discussion and decided to terminate the agreement. Under this termination, the company regains all development and marketing rights in the world for all indications of MT-1303 and will record a lump sum revenue, booked as liability of deferred income at the end of December 2016 based on IFRS in the fourth quarter of 2016. Mitsubishi Tanabe Pharma Corporation will continue to develop this product by itself or with a new partner.