Sanofi, Regeneron Enter Major New Immuno-Oncology Collaboration

By Noemie Bisserbe

PARIS--French drug maker Sanofi SA (SAN.FR) said Tuesday it had entered into a new research agreement with Regeneron Pharmaceuticals Inc. and agreed to invest $2.17 billion to jointly develop new cancer treatments.

Sanofi will make an upfront payment to Regeneron of $640 million. Sanofi and Regeneron will invest $750 million and $250 million respectively, to develop new monotherapy and novel combinations of immuno-oncology antibody experimental drugs.

Each company will also invest an additional $325 million to develop REGN2810, a so-called PD-1 inhibitor--a drug that blocks a protein called programmed death receptor 1, or PD-1, which acts as a brake on certain immune-system cells to prevent them from attacking healthy tissue.

In the event that sales of a PD-1 product, or any other drug sold for use in combination with a PD-1 product, exceed $2 billion in any consecutive 12-month period, Sanofi will pay to Regeneron a one-time milestone of $375 million.

Finally, the two companies have agreed to re-allocate $75 million over three years for immuno-oncology antibodies from Sanofi's $160 million annual contribution to their existing antibody collaboration.

Write to Noemie Bisserbe at [e-mail]

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