Key facts
- Sanofi will pay Regeneron up to $8 billion for four new antibodies.
- The deal includes a $1 billion upfront payment and up to $7 billion in milestone payments.
- The new antibodies target immune signals driving inflammation in conditions like eczema.
- Regeneron will lead research and development, while Sanofi will lead global sales for the expanded partnership.
- Sanofi views the deal as a step to rebuild its pipeline before Dupixent loses patent protection.
Sanofi announced on Thursday that it will pay its US partner Regeneron up to $8 billion to incorporate four new antibodies into their existing partnership, which is behind the blockbuster eczema drug Dupixent. The deal includes an upfront payment of $1 billion and up to $7 billion in milestone payments.
These experimental antibodies, similar to Dupixent, target immune signals that drive inflammation in conditions such as eczema, but are designed for longer duration in the body. Sanofi views this agreement as a crucial first step in rebuilding its drug pipeline in anticipation of Dupixent's eventual patent expiration.
Jefferies noted that while the assets are in early stages, the expansion signals the new CEO's proactive approach to investor concerns. The companies have also resolved prior litigation concerning their collaboration. Under the expanded partnership, Regeneron will lead research and development, while Sanofi will manage global sales. Costs and profits will be split equally, with existing profit-sharing terms for Dupixent remaining unchanged. Regeneron also holds an option to join Sanofi's experimental drug lunsekimig trials for chronic obstructive pulmonary disease.