Summary
Regeneron Pharmaceuticals, Inc. (REGN) announced an amendment to its Focused Collaboration Agreement with The Procter & Gamble Company (P&G). The amendment, effective June 30, 2005, prematurely terminates the research activities under the agreement, six months ahead of its scheduled expiration. This termination marks the completion of the research phase of the collaboration. Under the terms of the amendment, P&G will provide Regeneron with approximately $8.4 million to fulfill its remaining research funding obligations. Regeneron, in turn, will pay P&G $950,000 to acquire certain capital equipment. The agreement also details the division of rights to research programs and pre-clinical product candidates. Notably, Regeneron will be entitled to royalties on future product sales of a P&G pre-clinical candidate, but not for any other products arising from the collaboration. Neither party will participate in the development or commercialization of the other's product candidates.
Key Highlights
- 1Early termination of research activities under the Focused Collaboration Agreement with Procter & Gamble (P&G), effective June 30, 2005.
- 2P&G to make a final payment of approximately $8.4 million to Regeneron for remaining research funding.
- 3Regeneron to pay P&G $950,000 for the acquisition of specific capital equipment.
- 4Division of rights to research programs and pre-clinical product candidates developed during the collaboration.
- 5Regeneron eligible to receive royalties on future sales of one specific P&G pre-clinical candidate.
- 6Neither party will have rights to participate in the development or commercialization of the other's product candidates.