Updated from 4:35 p.m. EDTMillennium Pharmaceuticals ( MLNM) signed an agreement with Ortho Biotech Products, a unit of Johnson & Johnson ( JNJ), to collaborate on the commercialization and continued clinical development of Velcade, a cancer treatment approved by the Food and Drug Administration in May. Millennium will retain all commercialization rights and profits related to Velcade in the U.S. Following regulatory approvals of Velcade in other countries, Ortho Biotech and its affiliate Janssen-Cilag will market the drug outside the U.S. Millennium will still have an option to co-promote Velcade in the future in some European nations. Ortho and Janssen-Cilag will pay Millennium royalties on Velcade sales outside the U.S. Millennium will receive an upfront payment from Ortho of $15 million. In addition, the company could receive payments for achieving clinical development and regulatory approvals outside of the U.S. related to multiple myeloma, and for sales milestones that might reach as much as $125 million. Millennium, which traded as low as $6.56 on March 7, more than doubled to a high of $17.64 in early June. The rally was feuled in part because of perceptions the company was a buyout candidate -- a thesis that's hurt by Monday's news. Recently the shares were down 92 cents, or 6%, from their 4 p.m. EDT close of $15.73. Under the terms of the J&J pact, Millennium will be eligible to receive payments of up to roughly $330 million for achieving prespecified clinical and regulatory approval marks outside of U.S. for additional cancers, and as much as $65 million if certain sales milestones are reached in other countries. Millennium, in addition to Ortho and its research affiliate Johnson & Johnson Pharmaceutical Research and Development, will jointly conduct a global program for further clinical development of Velcade in the U.S., the European Union and Japan. The program will investigate the potential of Velcade to treat multiple forms of solid and hematological cancers. Ortho will be responsible for 40% of the joint development costs through 2005 and for 45% of those costs thereafter. Total joint development costs, assuming success in multiple tumor types, may be up to $500 million, according to existing development plans.