2012 Annual Report  The U.S. commercialization agreement was amended in October 2012 requiring Otsuka to assume full responsibility for providing and  funding all sales force efforts effective January 2013. In consideration, BMS paid Otsuka $27 million in January 2013, and will be  responsible for funding certain operating expenses up to $82 million in 2013, $56 million in 2014 and $8 million in 2015. In the EU,  Otsuka will reimburse BMS for its sales force effort provided through March 31, 2013. Beginning April 1, 2013 Otsuka will assume  responsibility for providing and funding sales force effort.  $^{ }$BMS and Otsuka also entered into an oncology collaboration for  Sprycel  and  Ixempra  (ixabepilone) for the U.S., Japan and European  Union (EU) markets (the Oncology Territory). A collaboration fee, classified in cost of products sold, is paid to Otsuka based on the  following percentages of annual net sales of  Sprycel  and  Ixempra  in the Oncology Territory:  $^{ }$During these periods, Otsuka contributes (i) 20% of the first $175 million of certain commercial operational expenses relating to the  oncology products, and (ii) 1% of such commercial operational expenses relating to the products in the territory in excess of $175  million. Beginning in 2011, Otsuka copromotes  Sprycel  in the U.S. and Japan, and has exercised the right to copromote in the top five  EU markets beginning in January 2012.  $^{ }$The U.S. extension and the oncology collaboration include a change-of-control provision in the case of an acquisition of BMS. If the  acquiring company does not have a competing product to  Abilify , then the new company will assume the  Abilify  agreement (as  amended) and the oncology collaboration as it exists today. If the acquiring company has a product that competes with  Abilify , Otsuka  can elect to request the acquiring company to choose whether to divest  Abilify  or the competing product. In the scenario where  Abilify is divested, Otsuka would be obligated to acquire the rights of BMS under the  Abilify  agreement (as amended). The agreements also  provide that in the event of a generic competitor to  Abilify  after January 1, 2010, BMS has the option of terminating the  Abilify  April  2009 amendment (with the agreement as previously amended remaining in force). If BMS were to exercise such option then either (i)  BMS would receive a payment from Otsuka according to a pre-determined schedule and the oncology collaboration would terminate  at the same time or (ii) the oncology collaboration would continue for a truncated period according to a pre-determined schedule.  $^{ }$The EU agreement remained unchanged and will expire in June 2014. In other countries where BMS has the exclusive right to sell  Abilify , the agreement expires on the later of April 2015 or expiration of the applicable patent or data exclusivity in such country.  $^{ }$In addition to the $400 million extension payment, total milestones paid to Otsuka were $217 million, of which $157 million was  expensed as IPRD in 1999. The remaining $60 million was capitalized in other intangible assets and was amortized to cost of  products sold over the remaining life of the original agreement in the U.S.  Year Ended December 31,  Dollars in Millions 2012 2011 2010 Abilify  net sales, including amortization of extension payment $  2,827  $   2,758 $  2,565  Oncology Products collaboration fee expense   138   134  128  Royalty expense   78   72  62  Reimbursement of operating expenses to/(from) Otsuka  (49) (47) (101) Amortization (income)/expense – extension payment   66   66  66  Amortization (income)/expense – upfront, milestone and other licensing payments   5   6  6  $^{ }$Summarized financial information related to this alliance is as follows:  December 31, Dollars in Millions 2012 2011  Other assets – extension payment $   153  $  219  Other intangible assets – upfront, milestone and other licensing payments   -   5  $^{ }$Lilly $^{ }$BMS has an Epidermal Growth Factor Receptor (EGFR) commercialization agreement with Eli Lilly and Company (Lilly) through  Lilly’s 2008 acquisition of ImClone Systems Incorporated (ImClone) for the codevelopment and promotion of  Erbitux  and  necitumumab (IMC-11F8) in the U.S., which expires as to  Erbitux  in September 2018. BMS also has codevelopment and  copromotion rights to both products in Canada and Japan.  is indicated for use in the treatment of patients with metastatic  colorectal cancer and for use in the treatment of squamous cell carcinoma of the head and neck. Under the EGFR agreement, with  respect to  Erbitux  sales in North America, Lilly receives a distribution fee based on a flat rate of 39% of net sales in North America  plus reimbursement of certain royalties paid by Lilly.  39  % of Net Sales 2010 - 2012 2013 - 2020  $0 to $400 million 30 %  65 %  $400 million to $600 million  5 12 $600 million to $800 million  3 %  3 %  $800 million to $1.0 billion  2 2 In excess of $1.0 billion  1 %  1 % 