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Sanofi to Pay Regeneron $462 Million as Part of 2015 Collaboration Restructuring

7:59 AM, Jan 7, 2019 — Sanofi (SNY) and Regeneron Pharmaceuticals (REGN) have restructured their deal on global immuno-ongology discovery and development agreement to develop new cancer treatments that was set to end in 2020.

The companies said in a statement on Monday that they’ve updated the deal that was originally signed in 2015 to extend collaborative efforts on two clinical-stage bi-specific antibody programs.

Under the terms of the new agreement, Sanofi will pay Regeneron $462 million, the balance of payments due under the original contract, which covers Sanofi’s share of the discovery program costs for the last quarter of 2018 and up to $120 million in development costs for antibody programs, plus a termination fee.

Sanofi has the right to opt-in to the BCMAxCD3 and MUC16xCD3 bispecific programs when proof of concept is achieved or when the allocated funding is expended, and Regeneron will commit as much as $70 million to further develop the BCMAxCD3 bispecific antibody for multiple myeloma and up to $50 million to further develop the MUC16xCD3 bispecific for mucin-16 expressing cancers, the companies said.

“This provides Sanofi increased flexibility to advance its early-stage immuno-oncology pipeline independently while Regeneron retains all rights to its other immuno-oncology discovery and development programs,” the companies said.

Sanofi shares fell 1% in pre-bell trading while Regeneron jumped almost 7%.

After opt-in, Sanofi will lead development and commercialization of the BCMAxCD3 bispecific and fund 100% of development costs. Regeneron will reimburse up to 50% from its share of collaboration profits. The companies will share profits equally.

Regeneron will lead development and commercialization of the MUC16xCD3 bispecific in the US. The companies will share development costs and global profits equally. Sanofi will lead commercialization outside the US.

Ongoing collaboration between the companies on Libtayo will be unaffected by the amended agreement, according to the statement. Regeneron retains full rights to its other immuno-oncology programs.

Companies: Regeneron Pharmaceuticals, Inc.
Price: 397.55 Price Change: +25.47 Percent Change: +6.85

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