Regeneron and Sanofi Expand Alliance with $1B Upfront for Next-Gen Immunology Antibodies
REGN sits 40% above its 52-week low of $541.
Summary
Regeneron and Sanofi are expanding their 20-year antibody collaboration to co-develop four new long-acting immunology antibodies invented by Regeneron, including a Phase 1 IL-13 candidate in early-stage studies for atopic dermatitis (eczema) and a bispecific, with the other three expected to enter clinical trials next year. Regeneron gets $1 billion upfront and up to $7 billion in milestone payments subject to development, regulatory and commercial targets, with 50:50 profit sharing and equal sharing of development and commercialization costs. Regeneron has the option to include Sanofi's lunsekimig, which is being tested for chronic obstructive pulmonary disease. Regeneron has final decision-making authority on drug-development matters, while Sanofi has final decision-making authority on commercial decisions. The deal settles prior litigation related to the collaboration, including a 2024 lawsuit by Regeneron against Sanofi, and the existing profit-sharing agreement for Dupixent, which already generates over $5 billion quarterly for Sanofi, will not be affected. Sanofi shares climbed as much as 3.7% and Regeneron opened 1.1% higher after the deal was announced. Investors will hear more on today's 8:00 am ET conference call.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — Sanofi shares climbed as much as 3.7% and Regeneron opened 1.1% higher after the deal was announced.
- Deal Terms — Milestone payments of up to $7 billion are subject to development, regulatory and commercial targets. Companies will equally share development and commercialization costs and potential future profits from the new drugs. Existing profit-sharing agreement for Dupixent will not be affected.
- Drug Candidates — The four new drug candidates were invented by Regeneron. One new candidate is in early-stage studies for atopic dermatitis (eczema); the other three are expected to enter clinical trials next year. Regeneron has the option to include Sanofi's lunsekimig, which is being tested for chronic obstructive pulmonary disease.
- Governance — Regeneron has final decision-making authority on drug-development matters. Sanofi has final decision-making authority on commercial decisions.
- Litigation Settlement — Regeneron sued Sanofi in 2024; the deal settled prior litigation related to the collaboration.
All 9 details
- Regeneron sued Sanofi in 2024; the deal settled prior litigation related to the collaboration.
- Milestone payments of up to $7 billion are subject to development, regulatory and commercial targets.
- The four new drug candidates were invented by Regeneron.
- One new candidate is in early-stage studies for atopic dermatitis (eczema); the other three are expected to enter clinical trials next year.
- Regeneron has the option to include Sanofi's lunsekimig, which is being tested for chronic obstructive pulmonary disease.
- Companies will equally share development and commercialization costs and potential future profits from the new drugs.
- Existing profit-sharing agreement for Dupixent will not be affected.
- Regeneron has final decision-making authority on drug-development matters.
- Sanofi has final decision-making authority on commercial decisions.
At the time of this announcement, REGN was trading at $759.00 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $78.1B. The 52-week trading range was $541.00 to $859.34. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.