Regeneron, Sanofi expand alliance with $1 billion upfront deal

Tarrytown, New York and Paris - Pharmaceutical giants Regeneron and Sanofi have announced a significant expansion of their antibody collaboration, with the agreement delivering an upfront payment of $1 billion to Regeneron, alongside the potential for additional milestone payments totaling up to $7 billion, according to a press release. This partnership, which dates back to 2003, has previously produced the widely-used drug Dupixent (dupilumab) for nine distinct indications.

Under the terms of the new deal, Regeneron will receive four long-acting antibodies, including REGN20423, a clinical-stage IL-13 monoclonal antibody that is currently undergoing Phase 1 trials for atopic dermatitis. In addition to this, three other antibodies - targeting IL-4xIL-13 bispecific, IL-4, and IL-4Rα - are set to enter clinical studies in 2027.

The companies have agreed to share both the costs of development and commercialization equally, as well as to split future profits 50-50 on a global scale. Regeneron will be responsible for leading research and development activities, while Sanofi will take the reins for global commercial efforts.

Moreover, Regeneron has the option to include Sanofi's investigational bispecific therapy, lunsekimig, in the collaboration once its Phase 3 trials for chronic obstructive pulmonary disease are successfully completed. This option will become available upon the conclusion of the aforementioned trials.

The expansion of their collaboration builds upon the foundation established by Regeneron and Sanofi since 2003, resulting in the creation of Dupixent. Regeneron's President and Chief Executive Officer, Leonard S. Schleifer, expressed his optimism about the future of their partnership, stating that this agreement will bring the next generation of immunology medicines to patients more rapidly.

Furthermore, it should be noted that the companies have concluded their prior collaboration-related litigation as part of this new agreement. A conference call for investors and analysts has been scheduled for today at 8:00 a.m. ET.