By Colin Kellaher

Regeneron Pharmaceuticals Inc. (REGN) and Sanofi SA (SAN.FR, SNY) on Tuesday said they plan to restructure their collaboration for Kevzara and Praluent into a royalty-based agreement.

Under the changes, France's Sanofi would gain sole global rights to the rheumatoid-arthritis treatment Kevzara, along with sole rights to the cholesterol drug Praluent outside the U.S.

Regeneron, based in Tarrytown, N.Y., would gain sole U.S. rights to Praluent.

The companies said the move doesn't affect their collaboration relating to the eczema and asthma treatment Dupixent, which Sanofi Chief Executive Paul Hudson on Monday said "has the chance to be one of the most successful medicines in the history of the industry."

Sanofi and Regeneron said each company will be solely responsible for funding development and commercialization expenses in their respective territories under the changes, which they expect to finalize in the first quarter.

Sanofi, which holds a 21.6% stake in Regeneron, on Monday said it would stop investing in research into diabetes and cardiovascular diseases as part of a broader strategic overhaul.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 10, 2019 09:07 ET (14:07 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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