Sanofi to pay Regeneron up to $8 billion to add new antibodies under Dupixent partnership

Sanofi has agreed to pay Regeneron a total of up to $8 billion in a partnership to develop four new antibodies under the same deal that brought their eczema drug Dupixent to market. The French pharmaceutical company is investing $1 billion upfront and potentially another $7 billion in milestone payments for these experimental antibodies, which aim to target immune signals that cause inflammation in conditions similar to eczema.

This move is seen as an important step for Sanofi as they rebuild their pipeline prior to Dupixent's patent expiry. While the new assets are still in early stages, the partnership signals a proactive approach from Sanofi's new CEO to address key uncertainties for investors. Regeneron will lead the research and development, while Sanofi will handle global sales.

The cost and profit sharing will be split equally, with the existing Dupixent profit-sharing terms remaining unchanged. Additionally, Regeneron has the option to join Sanofi's experimental drug lunsekimig once its late-stage trials for chronic obstructive pulmonary disease are completed.