Summary
Regeneron Pharmaceuticals, Inc. announced a significant amendment to its non-exclusive license agreement with Astellas Pharma Inc. regarding Regeneron's VelocImmune® technology. The agreement, originally set to expire in June 2013, has been extended for an additional ten years, now running until June 2023. This extension is accompanied by substantial financial benefits for Regeneron, including an immediate $165 million up-front payment due in August 2010 and a further $130 million payment in June 2018, contingent on the agreement not being terminated. This deal provides Regeneron with significant near-term capital, enhancing its financial flexibility and supporting its ongoing research and development efforts. While Astellas is no longer obligated for prior annual payments, the extended term and substantial payments underscore Astellas' continued commitment to leveraging Regeneron's antibody discovery platform. Regeneron will also continue to receive mid-single digit royalties on any future product sales derived from this collaboration.
Key Highlights
- 1Extended the VelocImmune® license agreement with Astellas Pharma Inc. by ten years, from June 2013 to June 2023.
- 2Received a $165 million up-front payment from Astellas in August 2010.
- 3Will receive a $130 million payment in June 2018, subject to agreement terms.
- 4Astellas is released from $20 million annual payments due in June 2011 and June 2012.
- 5Regeneron remains entitled to mid-single digit royalties on future product sales discovered using VelocImmune® technology by Astellas.
- 6The amendment signifies continued strong commercial interest in Regeneron's VelocImmune® technology.
- 7The filing also includes a press release on Q2 2010 financial and operating results (Exhibit 99.2).