By Noemie Bisserbe
PARIS--French drug maker Sanofi SA (SAN.FR) said Tuesday it had
entered into a new research agreement with Regeneron
Pharmaceuticals Inc. and agreed to invest $2.17 billion to jointly
develop new cancer treatments.
Sanofi will make an upfront payment to Regeneron of $640
million. Sanofi and Regeneron will invest $750 million and $250
million respectively, to develop new monotherapy and novel
combinations of immuno-oncology antibody experimental drugs.
Each company will also invest an additional $325 million to
develop REGN2810, a so-called PD-1 inhibitor--a drug that blocks a
protein called programmed death receptor 1, or PD-1, which acts as
a brake on certain immune-system cells to prevent them from
attacking healthy tissue.
In the event that sales of a PD-1 product, or any other drug
sold for use in combination with a PD-1 product, exceed $2 billion
in any consecutive 12-month period, Sanofi will pay to Regeneron a
one-time milestone of $375 million.
Finally, the two companies have agreed to re-allocate $75
million over three years for immuno-oncology antibodies from
Sanofi's $160 million annual contribution to their existing
antibody collaboration.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
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