Summary
Regeneron Pharmaceuticals, Inc. (REGN) filed an 8-K on May 6, 2013, detailing significant updates to its collaboration with Sanofi. The company announced it has entered into two new agreements to regain exclusive rights to two families of antibodies previously part of their global collaboration. These agreements involve antibodies targeting angiopoietin2 (ANG2) for ophthalmology and platelet-derived growth factor (PDGF) for all indications. These strategic moves suggest Regeneron's intent to take greater control over the development and commercialization of these specific antibody programs. Investors should note the upfront payments, potential milestone payments, and royalty obligations associated with these deals, as well as Regeneron's assumption of sole development responsibility for these antibody families. The ANG2 antibody (REGN910) is already in Phase 1 development for advanced malignancies, indicating ongoing progress in the pipeline.
Key Highlights
- 1Regeneron has entered into two new agreements with Sanofi to acquire exclusive rights to two antibody families.
- 2The first agreement grants Regeneron exclusive rights in ophthalmology to antibodies targeting the angiopoietin2 (ANG2) receptor and ligand.
- 3Regeneron will make a $10 million upfront payment for the ANG2 ophthalmology rights and may pay an additional $5 million in development milestones and royalties.
- 4The second agreement grants Regeneron exclusive rights to antibodies targeting the platelet-derived growth factor (PDGF) family for all indications.
- 5Regeneron will make a $10 million upfront payment for the PDGF rights and may pay up to $40 million in development milestones and royalties.
- 6Regeneron will be solely responsible for the development costs of these ANG2 (in ophthalmology) and PDGF antibody programs.
- 7The ANG2 antibody (REGN910) is currently in Phase 1 development for advanced malignancies.