Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) And Sanofi SA (NASDAQ:SNY) have to revise an agreement they entered into in 2015 and which set to end in mid-2020. The revision of the global immuno-oncology discovery and development agreement will incorporate new immuno-oncology cancer treatments. However, Regeneron will retain all rights to its other programmes related to immuno-oncology discovery and development. Meanwhile, the two will continue co-marketing other treatments such as (2018) PD1 blocker cemiplimab (REGN2810) approved by the FDA.
What are benefits of the restructuring the agreement? Are there any financial implications?
The two pharmaceutical giants will independently enjoy exclusive benefits from the restructuring of the agreement. Sanofi will reap from increased flexibility as it advances its early-stage immuno-oncology pipeline. Its counterpart will take away all the rights of other programmes. However, the duo will be able to collaborate in the development of two clinical-stage bispecific antibody programmes known as BCMAxCD3 and MUC16xCD3.
Financially, Regeneron will make up to $120m from the development of the two programmes. Nonetheless, it will provide up to $70m as partial costs of the development of BCMAxCD3 and $50m for the development of MUC16xCD3. On the other hand, Sanofi will have to release $462m being the balance due to the previous agreement. It will also part with $120m for research and development of the new antibodies.
Transformation of scientific innovation into healthcare solutions
The two companies have been working tirelessly to transform scientific innovation into healthcare solutions and empower life. Sanofi operates across 100 countries attending to more than 100,000 people. A majority of them are suffering from long-term chronic conditions and rare diseases. Sanofi’s primary focus is on providing innovative treatments and vaccines, which fights pain and eases suffering.
Regeneron has put so much into life-transforming medicines. Having been in the market for 30 years, the biotech has acquired the unique capability of translating science into medicine. Within that period, it has obtained approval of seven treatments from the FDA. However, it has several other product candidates in development stages.
Its treatments treat various categories of diseases such as cardiovascular and metabolic, allergic and inflammatory, infectious and eye diseases.