Document:

Exhibit 10.13

 

WORK ORDER NO. 2*

 

THIS WORK ORDER NO. 2 is by and between RADIUS HEALTH, INC. (“RADIUS”) and LONZA Sales Ltd, a Swiss company having an address at Muenchensteinerstrasse 38, CH-4002 Basel, Switzerland (together with its Affiliates, “Manufacturer”), and upon execution will be incorporated into the Development and Manufacturing Services Agreement between RADIUS and Manufacturer dated October 16, 2007 (the “Agreement”).  Capitalized terms in this Work Order will have the same meanings as set forth in the Agreement.

 

RADIUS hereby engages Manufacturer to provide Services, as follows:

 

1.             API/Drug Substance and Product.

 

BA058

 

Nomenclature:   Chemical Name:  [*]; The active pharmaceutical ingredient (API), BA058 API, is isolated with associated water and acetate.

 

2.             Services.  Manufacturer will render to RADIUS the following Services:

 

Manufacturer will produce Product hereunder for use by Radius in a Phase III clinical study.  Such work shall be performed in accordance with Exhibits A-C plus such additional requirements as discussed below.

 

Production:  Manufacturer will perform a solid-phase-peptide-synthesis process (SPPS) characterized by the stepwise addition of Fmoc-amino acids using Fmoc-Aas and coupling agents, followed by cleavage I deprotection and work-up in accordance with the “Proposal for the Manufacture of [*]g and [*]g, [*]g and [*]g of BA058 and upgrading of analytical methods to NDA filing levels for Radius Health, Inc.” attached hereto as Exhibit A).  Production will be performed in a 20L reactor.  Two purification steps will be performed by reverse phase HPLC, which is followed by isolation by means of lyophilization.  The purification will be monitored using the Manufacturer’s methods FG1 and VG1.

 

Analytical development:  As a first step, method comparability between TG1, VG1 and FG1 will be established in accordance with the “Analytical Development Proposal for BA058, API Project (Lonza RDS-001)” attached here as Exhibit B).  If needed, additional method development may be performed to identify the method of choice.  Once identified, the methods of choice (probably two) that are suitable for quantification of process impurities and supportive of ICH-stability studies will identified and agreed by the parties.  Resulting product will be greater than [*]% pure as measured by the Manufacturer’s method FG1.  Release will be performed using the TG1 method, originally developed by Ipsen, unless otherwise agreed upon in advance based upon the outcome of the analytical method qualification.

 

Stability:  an ICH-stability study will be performed according to the requirements in “SP-RDS-001 Stability Protocol for BA058 API, an Analog of Human Parathyroid-related Peptide (PTHrP)” (Exhibit C).

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

CONFIDENTIAL

 

1

 

The above requirements, and any additional requirements that are agreed by the parties as contemplated above, shall be deemed part of the Specifications for the Product for purposes of the Agreement.

 

a)             Production will be initiated by the week of [*].  Analytical development will commence in the week of [*].  The deliverables will include regular updates (status reports, conference calls), as requested by Radius.  Release specifications are listed in Exhibit D, which for clarity shall be deemed part of the Specifications for the Product for purposes of the Agreement.  Modifications may be required, as the development status changes, and shall be agreed by the parties in writing.

 

b)            In the activities outlined in (a) and (b), which may include Manufacturer Processes, Manufacturer Technology may be incorporated with the prior consent of RADIUS.

 

c)             RADIUS will specify the number and size of aliquots to be produced and notify the Manufacturer.  The material can be stored at the Manufacturer’s site for up to [*] ([*]) months after release free of charge.  It will be shipped after notification of RADIUS by Manufacturer.  Amber glass packaging is assumed.  Upon request by RADIUS, Manufacturer will provide additional dispensing at additional charge to be communicated to RADIUS beforehand.

 

d)            A project team will be formed which will work closely with the team at RADIUS.  The project team will include technical project leaders as well as the appropriate QC, QA, and Regulatory personnel.  Communications with RADIUS will include weekly teleconferences as needed.  Audits of the manufacturing plants and general customer visits may be scheduled as needed.

 

e)             For further details, please refer to Exhibits A, B and C attached hereto.

 

f)             All Services hereunder will be conducted in compliance with analytical standards suitable for NDA filing and in compliance with cGMP for Phase III product.

 

3.             Completion:

 

Production will be completed by week of [*] and API will be shipped to RADIUS by week of [*].

 

	
Preparation:
    	
 
    	
week   of [*]
    
	
Start   of Upstream:
    	
 
    	
week   of [*] (week [*])
    
	
Global   deprotection:
    	
 
    	
week   of [*] (week [*])
    
	
Start   of Downstream:
    	
 
    	
week   of [*] (week [*])
    
	
Lyophilisation   step:
    	
 
    	
week   of [*] (week [*])
    
	
API   QC/QA release:
    	
 
    	
week   of [*] (week [*])
    
	
Shipment   of API:
    	
 
    	
week   of [*] (week [*])
    

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

2

 

4.             Facilities.  The Services described above will be rendered at the Facility unless another facility of Manufacturer is indicated below:

 

Lonza S.A., Chausée de Tubize 297, B-1420 Braine l’Alleud, Belgium

 

5.             RADIUS Materials.  RADIUS will provide to Manufacturer the following materials to be used by Manufacturer to perform the Services:

 

None

 

6.             RADIUS Equipment.

 

None

 

7.             Manufacturer Representative.

 

Raimund Miller, Director, Sales and Business Development, Lonza Custom Manufacturing

 

8.             RADIUS Representative.

 

Louis O’Dea, Senior Vice President and Chief Medical Officer

 

9.             Compensation.  The total compensation due Manufacturer for Services under this Work Order is €[*].

 

	
 
    	
 
    	
Gram
    	
 
    	
€/gram
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
[*]g
    	
 
    	
$[*]
    	
 
    	
€
    	
 
    
	
Raw Materials
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
Production (incl. SPPS, IPC, DSP)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
QC, QA release
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
HPLC methods comparability
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
Additional method development (optional)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
HPLC method qualification
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
ICH-stability
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    
	
TOTAL cost
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    	
 
    

 

Such compensation will be paid in installments.  [*]% of the costs listed above are due upon, signing of this Work Order.  The remaining payments are due upon completion of the Services and delivery of the resulting material.  RADIUS and Manufacturer must agree in advance of either party making any change in the compensation due hereunder.  Manufacturer will invoice RADIUS to the attention of Nick Harvey, SVP and CFO, for Services rendered under this Agreement.  Manufacturer will invoice RADIUS for all amounts due under this Work Order.  All undisputed payments will be made by RADIUS within [*] ([*]) days of receipt of invoice.

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

3

 

10.          Insurance will be provided as required by the Agreement.

 

 

All other terms and conditions of the Agreement will apply to this Work Order.

 

WORK ORDER AGREED TO AND ACCEPTED BY:

 

	
RADIUS   HEALTH, INC.
    	
 
    	
LONZA   SALES LTD
    
	
 
    	
 
    	
 
    
	
By
    	
/s/   B. N. Harvey
    	
 
    	
By
    	
/s/   Raimund Miller
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Print   Name
    	
Nick   Harvey
    	
 
    	
Print   Name
    	
Raimund   Miller, PhD.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title
    	
CPO
    	
 
    	
Title
    	
Director,   Sales & BD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date
    	
Jan   15, 2010
    	
 
    	
Date
    	
Jan.   15, 2010
    

 

4

 

Exhibit A

 

Proposal for the Manufacture of [*]g and [*]g, [*]g and [*]g of BA058 and upgrading of analytical methods to NDA filing levels for Radius Health, Inc.

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

5

 

 

PROPOSAL for the MANUFACTURE of [*]g and [*]g, [*]g and [*]g

of BA058 (Lonza Designation:  RDS-001)

and upgrading of analytical methods to NDA filing levels

for RADIUS Health, Inc.

(As per the March 19 and April 06, ‘09 RFPs)

1st Amendment dated April 28, ‘09

(all new text in blue)

2nd Amendment dated April 30, ‘09

(all new text in dark yellow)

3rd Amendment dated Nov. 30, ‘09 and Dec. 01, ‘09, and Dec. 3, ‘09

(for [*]g and [*]g; all new text in red)

 

 

Prepared for:

Maria Grunwald, Ph.D., MBA

Director, Business Development

Radius

300 Technology Square, 5th Floor

Cambridge, MA 02139

 

 

Prepared by:

Raimund J. Miller, PhD.

Director, Sales & Business Development

Lonza Custom Manufacturing

25 Commerce Drive

Allendale, NJ 07401

 

 

Date:

April 20, 2009

April 28, 2009

April 30, 2009

Nov. 30, 2009, Dec. 01, ‘09, Dec. 3, ‘09

 

DISCLAIMER

 

THIS DOCUMENT IS ISSUED BY LONZA FOR DISCUSSION PURPOSES ONLY.  IT IS NOT INTENDED TO CONSTITUTE ANY SORT OF OFFER OR TO CREATE ANY LEGAL RELATIONS BETWEEN LONZA AND ANY OTHER PARTY.

 

THE SUPPLY OF THIS DOCUMENT IN ELECTRONIC FORM IS STRICTLY ON THE UNDERSTANDING THAT NO AMENDMENTS WILL BE MADE TO IT WHICH ARE NOT EXPLICITLY DRAWN TO LONZA’S ATTENTION EITHER BY MARKING THE CHANGES IN THE TEXT ITSELF OR OTHERWISE IN WRITING.  LONZA DOES NOT AGREE TO ANY AMENDMENT

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

CONFIDENTIAL

 

1

 

WHICH IS NOT SO EXPLICITLY BROUGHT TO OUR ATTENTION.

 

1)            Background

 

On March 19, ‘09 Dr. Maria Grunwald asked for a cost proposal + timelines for upgrading the analytical methods, which were employed in the 1st BA-058 campaign, to NDA filing levels.  This was followed by a request for proposal on April 6, ‘09 for pricing for a [*]g Ph III / cGMP campaign.  On April 29, ‘09 Radius placed a request to include pricing for a [*]g as well.  The 04/30/09 2nd proposal amendment provides pricing for the [*]g. On Nov. 23, ‘09 Radius requested a proposal for a [*]g batch for Phase 3 (requiring manufacture to GMP standards).  On Nov. 30, ‘09 Radius requested that pricing be added for a [*]g campaign as well.  On Dec. 3, ‘09, Radius requested a “break” on the [*]g price which Lonza is willing to give in support of Radius’ program.

 

In mid 2008 Lonza Braine performed the 1st BA-058 campaign (C1 campaign) which yielded [*]g peptide corresponding to [*]g net peptide.  An extra quantity of [*]g powder weight was generated during this first campaign.

 

Campaign summaries were provided in Process Analytical reports which were sent to Radius on March 2, ‘09 (PAR-S-RDS-001-103 C1, concerning upstream process description) and on March 9, ‘09 (PAR-P-RDS-001-Campaign 1-Lot 8AG1, concerning downstream process description).

 

To date (April 20, ‘09) the following shipments were made out of this C1 campaign:

 

1) In February ‘09, [*]g ([*] x [*]g powder weight) were sent to Vetter Pharma (Germany).

 

2) In March ‘09, [*]g ([*] x [*]g + [*] x [*]g powder weight) were sent to Charles River Laboratories (Canada)

 

2)            BA058—the Product

 

The BA058 (RDS-001) Peptide is an [*]

 

General Information

 

Nomenclature

 

	
Chemical   Name:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
USAN   Name:
    	
 
    	
Not   assigned
    
	
 
    	
 
    	
 
    
	
Research   Names:
    	
 
    	
BA058
    	
(Radius   Code)
    

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

2

 

	
CAS   Registry
    	
 
    	
247062-33-5,   512206-66-5, 506422-98-6
    
	
Numbers:
    	
 
    	
 
    

 

Structure

 

The structure of BA058 peptide is depicted in Figure 1.

 

Figure 1:               Structure of BA058 Peptide

 

 

The active pharmaceutical ingredient (API), BA058 API, is isolated with associated water and acetate.

 

3)            Process:

 

The manufacturing process which Radius asked Lonza to quote on for the 1st campaign was outlined in the 4/17/07 RFP.  The process is a solid-phase-peptidesynthesis process (SPPS) characterized by the [*] amino acids [*] and coupling agents, followed by cleavage, deprotection and work-up; the purification is performed by reverse phase HPLC which is followed by isolation by means of lyophilization.

 

In the course of the feasibility study performed by Lonza Braine in early ‘08, two different analytical methods were developed in order to properly monitor purification of the peptide.  These two methods provide much better resolution than the one received from Radius using a TFA based system.

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

3

 

During the C1 campaign, these methods were used for the monitoring of the primary purification of the peptide.  This has resulted in an 00C (out of criteria), as the min. of [*] % purity was not reached at the end of this step of purification.

 

In an internal meeting, it was decided to implement a second step of purification using acetic acid medium in order to increase the purity of fractions.  At the same time, Radius requested to use the TFA method for the QC lot release.  Lonza proposed to add one of our methods for supportive data during this release.

 

By using Lonza’s analytical method, it was possible to produce an extra pure lot at [*]% HPLC purity (Radius method).  This means also that recovery and productivity were low due to a secondary step of purification and recycling to reach the required purity.

 

The new pricing is based on yields and recoveries obtained during the C1 campaign, which should not be considered as a representative campaign.

 

For the future C2 campaign, norms to reach will be performed in TFA method (using the Radius HPLC method).

 

Concerning change of equipment, assembly of the peptide on the resin during C1 campaign has been performed in a 20 L-Pepsynloop reactor.  For a batch size of [*]g NPW API, a bigger reactor will be used, such as a 50L-Pepsynloop reactor.  The upstream process will not be changed as the same technology is used in either reactor.

 

For the sake of this 1st amendment of the April 20th proposal all quantities to be produced have been revised, and the entire campaign has been recalculated.  The final quantity to be produced is [*]g net peptide weight at [*]% HPLC purity (by the Radius method) which is unchanged.  The upstream will be performed in two small-scale SPPS reactors (2 x 20 L) in parallel vs. a single 50 L reactor in the initial proposal.

 

For the sake of the 2nd amendment a totally new production concept has been worked up and costed.  In this case we can use mid-scale equipment:  one run in 50 L SPPS reactor and LC200 for downstream; considerably less manpower is required in this production scenario resulting in considerable cost savings vs. a [*]g campaign.

 

For the sake of the 3rd amendment and as the request concerns the same batch size as for C1 campaign, we can use the same size equipment.  This means, small-scale SPPS reactor (20 L) and LC150 for downstream.  All improvements needed, coming from know-how acquired during C1 campaign, will be implemented in this new campaign.

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

4

 

4)            Price Proposal and Assumptions for new [*]q and [*]q cGMP campaigns.  The Quotation is in Euros (pro memoriam:  the 11/30/09 US$ / Euro exchange rate is 1.5035):

 

	
 
    	
 
    	
[*]g
    	
 
    	
[*]g
    	
 
    
	
Raw Materials
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
Production (incl. SPPS, IPC, DSP)
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
QC, QA release
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
TOTAL cost of [*]g campaign
    	
 
    	
Euros [*]
    	
 
    	
Euros [*]
    Euros [*]
    	
 
    

 

A [*]g campaign is not well suited to the smallest reactor which we will have to use.  A [*]g campaign is much better suited.

 

The target quality of the [*]g and [*]g campaigns (NPW, net peptide weight) will be [*]% (HPLC, Radius method).

 

In terms of timing, synthesis + purification + QA/QC release are estimated to take [*] weeks for the [*]g, [*] weeks for the [*]g campaign.

 

5)            Price Proposal and Assumptions for a new [*]q cGMP campaign.  The Quotation is in Euros (pro memoriam:  the 04/28/09 US$ / Euro exchange rate is 1.3153):  [SECTION 4 AND PRICING OF [*]G REMAINS UNCHANGED IN THE 2ND AMENDMENT]

 

Prior to the start of production, specific raw material purchasing and their QC/QA release have to be scheduled.  These tasks are estimated to take [*] weeks.

 

Production of [*] g (NPW, net peptide weight) at [*]% (HPLC, Radius method), including upstream, downstream, QC and QA release of the GMP lot.

 

Price :  € [*] (all inclusive of raw materials, production, and margin)

 

This cost does NOT include Reference Standard qualification on this lot.  New internal QA guideline is a separate RS from the batch (extra pure one, which means:  two separate lyophilisation steps, 2 distinct QC releases and so on).  Associated costs have been calculated as follows:

 

Assumptions :

 

	
·
    	
[   Extra pure API (part of the purification lot)
    
	
·
    	
Lyophilisation
    
	
·
    	
QC   release ]
    	
 
    	
[*]   €
    
	
·
    	
5g   net peptide weight
    	
 
    	
[*]   €
    

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

5

 

Total costs for a new reference standard:  € [*]

 

6)            Price Proposal and Assumptions for a new [*]q cGMP campaign.  The Quotation is in Euros (pro memoriam:  the 04/30/09 Euro / US$ exchange rate is 1.3205):

 

Prior to the start of production, specific raw material purchasing and their QC/QA release have to be scheduled.  These tasks are estimated to take [*] weeks.

 

Production of [*]g (NPW, net peptide weight) at [*]% (HPLC, Radius method), including upstream, downstream, QC and QA release of the GMP lot.

 

Price :  € [*] (all inclusive of raw materials, production, and margin; excluding the €[*]  cost for the new stationary phase for the larger column)

 

This cost does NOT include Reference Standard qualification on this lot.  New internal QA guideline is a separate RS from the batch (extra pure one, which means:  two separate lyophilisation steps, 2 distinct QC releases and so on).  Associated costs have been calculated as follows:

 

Assumptions :

 

	
·
    	
[   Extra pure API (part of the purification lot)
    
	
·
    	
Lyophilisation
    
	
·
    	
QC   release ]
    	
 
    	
[*]   €
    
	
·
    	
5g   net peptide weight
    	
 
    	
[*]   €
    

 

Total costs for a new reference standard:  € [*]

 

7)            Price Proposal for Upgrading of Analytical Methods to NDA filing levels.  The Quotation is in Euros (pro memoriam:  the 04/17/09 Euro / US$ exchange rate is 1.3043):

 

1.             Analytical activities (this should be performed in parallel of the GMP campaign, concerning validation methods.  For additional testing [*] extra weeks are needed after the release of the lot).

 

·      Validation of analytical methods :  Price € [*]

 

·      HPLC / M-009-RDS-001TG1 (QC release method)

·      HPLC / M-009-RDS-001 FG1 (QC release method)

·      Acetate and Trifluoroacetate content in API

·      Water content

·      GC-Headspace (complement to general method)

·      Direct GC (complement to general method)

·      Specific rotation

·      Peptide content (Nitrogen)

·      HPLC for in-process control upstream and downstream (3 methods).

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

6

 

·      Additional testing requested for NDA filling :  Price:  € [*]

 

·      LC-MS profiles of one lot + one lot in stability study (study of degradation of API:  impurity profile).

·      Comparability study for lots coming from different suppliers

·      Heavy metals

·      General properties:  polymorphism, solubility, pH (isoelectric point), appearance, etc...

 

For all this analytical work, [*] g powder weight of API is needed.  We still have [*] g powder weight of lot 8AG1 in stock.  We will be able to use this material if Radius so decides.  Otherwise, we will have to use an extra quantity to be made available from this lot (this one has not been paid yet by Radius).  This will be discussed with Radius when necessary.

 

Total price:  € [*]

 

2.             Regulatory activities

 

NDA filing.  Price:  € [*]

 

[*] weeks will be needed to finalize the NDA writing and associated corrections.

 

8)            Terms and Conditions

 

·      Proposal Validity:  May 31, ‘09.  After the expiry of the validity Lonza reserves the right to revisit all assumptions taken and outlined in this proposal.

·      Proposal Validity for 3rd Amendment:  May 31, ‘10.

·      Payment Terms:  a min. [*]% upfront payment is required upon commencement of project related lab activities.

·      Packaging:  Lonza standard packaging is assumed.  Should any non-standard packaging be required, additional costs associated with this change will be charged separately.

·      INCO-terms:  FCA Lonza Braine.

 

KB / RJM

04 / 20 / 09

04 / 28 /09

04 /30 / 09

11 / 30 /09; 12/01/09; 12/03/09

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

7

 

Grunwald, Maria

 

	
From:
    	
 
    	
Miller   Raimund - Allendale [raimund.miller@Ionza.com]
    
	
Sent:
    	
 
    	
Thursday,   December 17, 2009 10:07 AM
    
	
To:
    	
 
    	
Grunwald,   Maria
    
	
Cc:
    	
 
    	
Bouget   Karine - Braine
    
	
Subject:
    	
 
    	
New   Price offer for [*] g
    

 

Hello Maria,

 

Per our telecon on Tuesday, Dec. 15, we are herewith re-quoting for a new [*] g campaign which will produce [*] % material by the FG1 method.  The [*] % which were added to our Dec. 8, ‘09 quote for the same quantity, are to cover raw material supply and recycling steps during purification to reach the targeted purity.

 

Price Proposal and Assumptions for new [*] q cGMP campaign.

 

The Quotation is in Euros (pro memoriam:  the 12/17/09 US$ / Euro exchange rate is 1.437):

 

	
 
    	
 
    	
[*] g
    	
 
    
	
Raw Materials
    	
 
    	
[*]
    	
 
    
	
Production (incl. SPPS, IPC, DSP)
    	
 
    	
[*]
    	
 
    
	
QC, QA release
    	
 
    	
[*]
    	
 
    
	
TOTAL cost of [*] g campaign
    	
 
    	
Euros [*]
    	
 
    

 

Assumptions:  same as in the most recent proposal dated Dec. 3, ‘09.

 

Thanks,

Raimund

 

Raimund J. Miller, PhD.

Lonza Custom Manufacturing

Lonza Inc.

25 Commerce Drive

Allendale, NJ 07401

Tel+1-201-316-9322

Cell +1-201-233-2006

Fax+1-201-696-3530

 

Lonza

raimund.miller@lonza.com

www.lonza.com

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

1

 

Exhibit B

 

Analytical Development Proposal for BA058, API project (Lonza RDS-001)

 

6

 

 

Analytical Development Proposal For BA058, API Project
 (Lonza RDS-001)

 

Development proposal

 

The development proposal is divided into 3 steps that should be conducted prior to the next API batch release.

 

1.             HPLC methods comparability

 

A first step will be to establish method comparability between TG1, VG1 and FG1 HPLC methods, in order to understand the capabilities and pitfalls of these methods for true process impurities, including [3-34] and [4-34] truncated peptides.  The HPLC data will be backed up by LC/MS data to support identification of impurities and methods comparability in case of co-elution of impurities (either with the main peak or with other impurities).

 

This will also allow building a rationale for method change in future API release specifications.

 

This method comparability would be based on Lonza samples (including previously manufactured lots 5AG1R and 8AG1, [3-34] and [4-34] impurity markers, as well as DSP side fractions containing process impurities).  Should it be of interest to Radius, samples of BA058, API from other sources could also be added to this study in order to bridge these materials with the current Lonza material (8AG1).

 

Requirement:  Samples from Radius (if needed)

Timeline:  [*] weeks

Deliverable:  Comparability report between 3 HPLC methods, including LC/MS identification of impurities.

Price:  €[*]

 

2.             Additional method development

 

Based on the above assessment, additional HPLC method development may have to be performed, in order to identify the method of choice (separate the critical [3-34] and [4-34] from the other process impurities), in addition to the identified HPLC method that will be used to assess overall purity and individual impurities.

 

For this, we could use alternative stationary phases (eg HILIC) or even move to UPLC (more resolution power than HPLC)

 

Timeline:  [*] weeks

Deliverable:  HPLC method Development report

Price:  €[*]

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

 

 

3.                                      HPLC methods qualification

 

Once identified, the methods of choice (probably two) found suitable for their intended purposes (quantitation of process impurities, and stability-indicating to support ICH stability studies of API and DP) will be qualified.  One of these methods could also be used to determine the API content in the powder (against an external reference standard), should this be a requirement from Radius.  This method qualification work will have to be completed before initiation of the next campaign release.

 

Timeline:  [*] weeks (assuming 2 methods qualified in parallel)

Deliverable:  HPLC method Qualification protocol and report

Price:  € [*] per method (in line with any previous proposal for method qualification)

 

JMP / KB / RJM

01/08/10

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

 

Exhibit C

 

SP-RDS-001 Stability Protocol for BA058 API, an Analog of Human Parathyroid-related Peptide (PTHrP)

 

7

 

SP-RDS-001-8AG1

 

BA058 API, an Analog of Human Parathyroid-related Peptide
 (PTHRP)/RDS-001

 

 

Table of Contents

 

	
1.
    	
OBJECTIVE
    	
3
    
	
2.
    	
INTRODUCTION
    	
3
    
	
3.
    	
STABILITY   STUDY DESCRIPTION
    	
3
    
	
3.1
    	
Equipment   description
    	
3
    
	
3.2
    	
Containers   for stability samples
    	
3
    
	
3.3
    	
Analytical   tests to be performed
    	
4
    
	
3.4
    	
Acceptance   criteria
    	
4
    
	
3.5
    	
Testing   schedule
    	
4
    
	
3.5.1
    	
Material   required for each test per station and storage condition
    	
4
    
	
3.5.2
    	
Material   sampling per station and storage condition
    	
4
    
	
3.5.3
    	
Material   inventory
    	
5
    
				

 

 

1.                                      OBJECTIVE

 

This protocol describes the experiments to be performed in order to assess the stability of batch 8AG1 of BA058 Active Pharmaceutical Ingredient (API), as produced in the current manufacturing process.

 

2.                                      INTRODUCTION

 

This study will be performed in different storage conditions up to [*] months.

 

The conditions meet the requirements of the International Conference for Harmonization, as described in Q1A(R2) “Stability Testing of New Drug Substances and Products”.

 

3.                                      STABILITY STUDY DESCRIPTION

 

3.1                               Equipment description

 

·                                         Freezer at - 78°C ± 8°C
 Such as THERMO (Forma -86C ULT freezer)

 

Temperature records in Freezer at - 78°C ± 8°C :

·                                          Digital thermometer for permanent record

·                                          Manual record of temperature twice-weekly

·                                          The temperature uniformity is checked at least annually

 

·                                         Freezer at - 20°C ± 5°C
 Such as Elbanton LTV650.

 

·                                         Cold room at + 5°C ± 3°C
 Such as refrigerator WEISS

 

Temperature records in Freezer at - 20°C ± 5°C and in the cold room :

·                                          GTO monitoring for continuous monitoring and permanent record.

·                                          Manual record of temperature every day.

 

3.2                               Containers for stability samples

 

Stability samples will be stored in 8 mL HDPE bottle with suitable closure of the same quality as those used for bulk storage.

 

Two samples will be stored at below - 25°C as witness samples

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

 

3.3                               Analytical tests to be performed

 

	
Tests
    	
 
    	
Methods
    
	
Powder   appearance by visual examination
    	
 
    	
M-001
    
	
Water   content by coulometric KF
    	
 
    	
M-048
    
	
Overall   purity and related substances
    	
 
    	
M-009-RDS-001TG1
    
	
Overall   purity and related substances
    	
 
    	
M-009-RDS-001FG1
    
	
Peptide   content
    	
 
    	
M-022
    

 

3.4                               Acceptance criteria

 

The norms set in the current specifications are applied to the stability results obtained at the recommended storage temperature (- 20°C ± 5°C).

 

3.5                               Testing schedule

 

	
Months
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
+   5°C ± 3°C
    	
 
    	
—
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-   20°C ± 5°C
    	
 
    	
A
    	
 
    	
—
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    	
A
    	
 
    

 

3.5.1                     Material required for each test per station and storage condition

 

	
Tests & Methods
    	
 
    	
Quantity by test
    
	
·
    	
 
    	
Powder   appearance by visual examination
    	
 
    	
 
    
	
 
    	
 
    	
(M-001)
    	
 
    	
[*] mg
    
	
·
    	
 
    	
Water   content by coulometric KF
    	
 
    	
 
    
	
 
    	
 
    	
(M-048)
    	
 
    	
[*] mg
    
	
·
    	
 
    	
Peptide   content, overall purity and related substances
    	
 
    	
 
    
	
 
    	
 
    	
(M-009-RDS-001TG1)
    	
 
    	
[*] mg
    
	
·
    	
 
    	
Overall   purity and related substances by SEC-HPLC
    	
 
    	
 
    
	
 
    	
 
    	
(M-009-RDS-001FG1)
    	
 
    	
[*] mg
    
	
·
    	
 
    	
M-022   by nitrogen analysis
    	
 
    	
 
    
	
 
    	
 
    	
(M-022)
    	
 
    	
[*] mg
    

 

3.5.2                     Material sampling per station and storage condition

 

One HDPE bottle container containing [*] mg (all tests in duplicate analyses).

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

 

3.5.3                     Material inventory

 

The following table displays the material inventory required for this stability study :

 

	
 
    	
 
    	
Storage
   condition
    	
 
    	
Control time
   points
    	
 
    	
Reserve sample
    	
 
    	
Total number
    
	
Short   term
    	
 
    	
+ 5°C
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    
	
Long   term
    	
 
    	
- 20°C
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    
	
Witness   sample
    	
 
    	
Below - 25°C
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    
	
Initial
    	
 
    	
NA
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
[*]
    

 

This study will require [*] HDPE bottles containing [*] mg of powder.

 

A total quantity of [*] g of peptide powder is requested for this stability study

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

 

Exhibit D

 

	
Batch Analysis of BA058 API
    

 

	
Test
    	
 
    	
Specification
    
	
Appearance
    	
 
    	
White   to off-white powder
    
	
Identification:  HPLC
    	
 
    	
Co-Elutes   with reference
    
	
Identification:  TLC
    	
 
    	
Single   spot with Rf similar to reference
    
	
Assay   Peptide content (HPLC) Peptide   content (HPLC, anhydrous, free base basis)
    	
 
    	
> [*] (w/w)   [*] to [*]%
    
	
Purity   BA058 (HPLC) Total related impurities Individual related impurities
    	
 
    	
> [*]%, area %

< [*]%

< [*]% area %
    
	
Purity   by Mass Spectrometry 44117D(3-34 analog) 44116D (4-34 analog)
    	
 
    	
Not   detected**

Not   detected
    
	
Acetate   Content
    	
 
    	
< [*]% (w/w)
    
	
Water   Content
    	
 
    	
< [*] % (w/w)
    
	
TFA   Content
    	
 
    	
Report
    
	
Specific   Optical Rotation (anhydrous free base corrected)
    	
 
    	
Report
    
	
Residual   Solvents
    	
 
    	
Methanol   <[*]% w/w

Acetonitrile   <[*]% w/w

Ethyl   Acetate <[*]% w/w

Triisopropylsilane   <[*]% w/w

Dimethylformamid   <[*]% w/w
    
	
Microbial   content Bacteria Yeasts and Molds LAL
    	
 
    	
Report   (cfu/g)

Report   (cfu/g)

<   [*]UI/mg
    

 

* Confidential Treatment Requested by the Registrant.  Redacted Portion Filed Separately with the Commission

 

8Exhibit 10.14

 

AMENDMENT NO.3 to WORK ORDER NO.2*

 

This Amendment No. 3 to Work Order No.2 is entered into on December 15, 2010 by and between Radius Health Inc., a Delaware Corporation, with its principal office at 300 Technology Square - 5th floor, Cambridge, MA 02139, United States of America (“RADIUS”), and LONZA Sales Ltd, a Swiss company having an address at Muenchensteinerstrasse 38, CH-4002 Basel, Switzerland (together with its Affiliates, “Manufacturer”), and upon execution will be incorporated into Development and Manufacturing Services Agreement between RADIUS and Manufacturer dated October 16, 2007 (the “Agreement”). Capitalized terms in this Amendment will have the same meanings as set forth in the Agreement.

 

WHEREAS

 

RADIUS and Manufacturer are parties to Work Order No.2 executed January 15, 2010 under which Manufacturer had agreed to produce Product for use by Radius in a Phase III clinical study.

 

Manufacturer has produced excess product, which RADIUS wishes Manufacturer to purify to yield 100 grams of product (“Purified Product”) under this amendment.

 

Purified Product will be released, dispensed and packaged separately from Product.

 

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

 

1.                     Services.  Manufacturer will render to RADIUS the following Services:

 

Manufacturer will purify Product and release, dispense and package Purified Product hereunder suitable for use by RADIUS in a Phase III clinical study. Such work shall be performed in accordance with Exhibit A plus such additional requirements as discussed below. Prior to purification of Product, Manufacturer will (i) perform analytical testing of Product as identified in the first three bullet points of Section 5 of Exhibit A, (ii) provide Radius with (a) a report identifying the results of such testing and (b) Batch Documentation for the Product (collectively, (a) and (b) are the “Analytical Test Reports”) and (iii) obtain RADIUS’ written consent for Manufacturer to proceed with the remaining activities in this Amendment (“Consent to Purify”). The decision as to whether the analytical testing yielded satisfactory results and the Analytical Test Reports are acceptable will be at RADIUS’ sole and absolute discretion and RADIUS is under no obligation to provide any Consent to Purify.  Unless and until Consent to Purify is provided by RADIUS, no further Services under this Amendment shall be performed by Manufacturer.  The above requirements, and any additional requirements that are agreed by the parties as contemplated above, shall be deemed part of the Specifications for the Product for purposes of the Agreement.

 

a)                 Analytical testing will commence in the week of [*]. Purification will be initiated by the week of [*].  The deliverables will include regular updates (status reports, conference calls), as requested by Radius, and Batch Documentation for the Purified Product.  Release specifications for Purified Product are listed in Exhibit B, which for clarity shall be deemed part of the Specifications for the Product for purposes of the Agreement. Modifications may be required, as the development status changes, and shall be agreed by the parties in writing.

 

b)                In the activities outlined in (a), which may include Manufacturer Processes, Manufacturer Technology may be incorporated with the prior consent of RADIUS.

 

c)                 Upon completion of the purification activities described herein, Manufacturer will provide RADIUS with the Batch Documentation for the Purified Product for 

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

CONFIDENTIAL

 

1

 

RADIUS’ review.  No Purified Product will be shipped to RADIUS or its designee until it has received written approval to ship from RADIUS.

 

d)                RADIUS will specify the number and size of aliquots to be produced and notify the Manufacturer.  The material can be stored at the Manufacturer’s site for up to [*] ([*]) months after release free of charge. It will be shipped after notification of RADIUS by Manufacturer.  HDPE packaging is assumed. Upon request by RADIUS, Manufacturer will provide additional dispensing at additional charge to be communicated to RADIUS beforehand.

 

e)                 A project team will be formed which will work closely with the team at RADIUS. The project team will include technical project leaders as well as the appropriate QC, QA, and Regulatory personnel. Communications with RADIUS will include weekly teleconferences as needed.  Audits of the manufacturing plants and general customer visits may be scheduled as needed.

 

f)                 For further details, please refer to Exhibits A and B attached hereto.

 

g)                All Services hereunder will be conducted in compliance with analytical standards suitable for NDA filing and in compliance with cGMP for Phase III product.

 

2.                     Completion:

 

Analytical testing will be completed by [*]. The Analytical Test Reports will be provided to RADIUS by [*].  Purification will be completed by week of [*] and API will be shipped to RADIUS by week of [*].

 

3.                     Facilities.  The Services described above will be rendered at the Facility unless another facility of Manufacturer is indicated below:

 

Lonza S.A., Chausée de Tubize 297, B-1420 Braine l’Alleud, Belgium

 

4.                     RADIUS Materials.  RADIUS will provide to Manufacturer the following materials to be used by Manufacturer to perform the Services:

 

None

 

5.             RADIUS Equipment.

 

None

 

6.             Manufacturer Representative.

 

Raimund Miller, Director, Sales and Business Development, Lonza Custom Manufacturing

 

7.                     RADIUS Representative.

 

Louis O’Dea, Senior Vice President and Chief Medical Officer

 

8.                     Compensation.  The total compensation due Manufacturer for proper performance of Services under this Amendment is €[*]. Such compensation will be paid  in installments as follows: [*]% of the fee listed above is due upon RADIUS providing Consent to Purify. The remaining amount will be invoiced to RADIUS upon acceptance of the Services and delivery of [*] grams of the Purified Product to RADIUS. For the

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

2

 

avoidance of doubt, no compensation will be due Manufacturer for any Services performed under this Statement of Work if RADIUS elects not to provide the Consent to Purify.  RADIUS and Manufacturer must agree in advance of either party making any change in the compensation due hereunder. Manufacturer will invoice RADIUS to the attention of Nick Harvey, SVP and CFO, for Services rendered under this Agreement.  Manufacturer will invoice RADIUS for all amounts due under this Amendment.  All undisputed payments will be made by RADIUS within [*] ([*]) days of receipt of invoice.

 

9.             Insurance will be provided as required by the Agreement.

 

All other terms and conditions of the Agreement and Work Oder No. 2 will apply to this Amendment No.3.

 

 

	
AMENDMENT   AGREED TO AND ACCEPTED BY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
RADIUS   HEALTH, INC.
    	
 
    	
LONZA   SALES LTD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By
    	
/s/   B.N. Harvey
    	
 
    	
By
    	
/s/   Syed T. Husain
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Print   Name 
    	
Nick   Harvey
    	
 
    	
Print   Name
    	
Syed   T. Husain
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title   
    	
CFO
    	
 
    	
Title
    	
Head   of Sales & BD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date
    	
Dec.   14, 2010
    	
 
    	
Date
    	
15-Dec-10
    

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

3

 

Exhibit A

 

	
Radius
    	
 
    	
Page 1 of 3
    	
 
    	
LONZA
    
	
BA-058   (RDS-D01)
    	
 
    	
Version 1.1a
    	
 
    	
 
    

 

PROPOSAL

 

RADIUS

 

Product: BA-058

 

(Lonza Code: RDS-001)

 

Proposal for purification and Release of Overage ex C2 Campaign

 

([*] g NPW)

 

Version 1.1a

 

November 8, 2010

 

December 13, 2010

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

4

 

	
Radius
    	
 
    	
Page 2 of 3
    	
 
    	
LONZA
    
	
BA-058   (RDS-D01)
    	
 
    	
Version 1.1a
    	
 
    	
 
    

 

1) Introduction

 

The quotation provided herewith covers all activities which are required to purify and release the overage which resulted out of the C2 BA-058 campaign.  The target amount is [*] g NPW.

 

2) Peptide Sequence

 

H-Ala-Val-Ser-Glu-His-Gln-Leu-Leu-His-Asp-Lys-Gly-Lys-Ser-Ile-Gln-Asp-

Leu-Arg-Arg-Arg-Glu-Leu-Leu-Glu-Lys-Leu-Leu-Aib-Lys-Leu-His-Thr-Ala-NH2

 

3) Assumptions / Remarks

 

·      This quotation is based on the yields and results obtained in the [*]g NPW campaign produced in 2010.

·      The same purification process will be used as the one used for C2 campaign: two HPLC purifications (primary and secondary purifications) in order to meet the expected customer specifications.  As a consequence, a final HPLC purity of the API > [*]% is expected to be obtained (FG1 method).

·      Raw material prices: standard 2010 raw material prices were used in the cost calculation.  Only purification related raw materials are included in this quotation.

·      We expect a min. of [*] g peptide (NPW) to result out of this purification campaign.

 

4) Purification of C2 crude overage at [*]g NPW scale

 

	
Raw   materials (€)
    	
 
    	
[*]
    
	
Manpower   Downstream (€)
    	
 
    	
[*]
    
	
Manufacturing   facilities downstream (€)
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Total   Production (€)
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
QA/QC   release (€)
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
TOTAL   (€)
    	
 
    	
[*]
    
	
Prices   per gram (€)
    	
 
    	
[*]
    

 

Timelines: [*] weeks; 1st purification line to become available in week [*] of [*].

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

5

 

	
RADIUS
    	
 
    	
Page 3 of 3
    	
 
    	
Lonza
    
	
BA-058 (RDS-001)
    	
 
    	
Version 1.1a
    	
 
    	
 
    

 

5) Activities to be performed prior to Purification (are all included in the quotation):

 

·      Analysis of the crude in IPC upstream HPLC release method, in order to check global purity.

·      LC-MS analysis in the same analytical method; comparison with the one available for the crude at t=0.

·      Assess potency of the crude by VG1 HPLC method before purification process.

·      Report of results as part of the purification batch record and review by Production and QA before purification.

·      Include decision point: apply C2 purification process, if there is no degradation. If there is degradation, include discussions to define a new process.

 

BK / RJM

11/08/10

12/13/10

 

6

 

Exhibit B

 

7

 

	
Test
    	
 
    	
Specification
    
	
 
    	
 
    	
 
    
	
Appearance
    	
 
    	
White   to off-white powder
    
	
 
    	
 
    	
 
    
	
Identification: HPLC
    	
 
    	
Co-Elutes   with reference
    
	
 
    	
 
    	
 
    
	
Identification:   TLC
    	
 
    	
Single   spot with Rf similar to reference
    
	
 
    	
 
    	
 
    
	
Assay
   Peptide content (HPLC)  
   Peptide content (HPLC, anhydrous, free base basis)
    	
 
    	
 

> [*] % (w/w)
   [*] to [*] %
    
	
 
    	
 
    	
 
    
	
Purity BA058 (HPLC)
   Total related impurities
   Individual related impurities
    	
 
    	
> [*] % ,area   %
    £ [*]% 
    £ [*]% area %
    
	
 
    	
 
    	
 
    
	
Purity by Mass Spectrometry
   44117D(3-34 analog)
   44116D (4-34 analog)
    	
 
    	
 

Not   detected**
   Not detected
    
	
 
    	
 
    	
 
    
	
Acetate   Content
    	
 
    	
£ [*]% (w/w)
    
	
 
    	
 
    	
 
    
	
Water   Content
    	
 
    	
£ [*] % (w/w)
    
	
 
    	
 
    	
 
    
	
TFA   Content
    	
 
    	
Report
    
	
 
    	
 
    	
 
    
	
Specific   Optical Rotation (anhydrous free base corrected)
    	
 
    	
Report
    
	
 
    	
 
    	
 
    
	
Residual   Solvents
    	
 
    	
Methanol   <[*]% w/w
   Acetonitrile <[*]% w/w
   Ethyl Acetate <[*]% w/w
   Triisopropylsilane <[*]% w/w
   Dimethylformamid <[*]% w/w
    
	
 
    	
 
    	
 
    
	
Microbial content
   Bacteria
   Yeasts and Molds 
   LAL
    	
 
    	
 

Report   (cfu/g)
   Report (cfu/g)
   < [*] UI/mg
    

 

* Confidential Treatment Requested by the Registrant. Redacted Portion Filed Separately with the Commission.

 

8

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