Sanofi and Regeneron Pharmaceuticals Inc. signed a new multimillion-dollar agreement which replaces the existing partnership between the drugmakers to develop cancer treatments.
The original 2015 agreement, which was supposed to end in mid-2020, will be superseded by a deal under which the French pharmaceutical giant will pay $462 million to New York-based Regeneron made up of the remaining amount from the previous contract; development costs of retained programs; and a termination fee for the programs not undertaken by the French company.
In return, Sanofi secures the right to opt-in for the development and commercialization of two product candidates — BCMAxCD3 and MUC16xCD3 — when proof of concept is achieved or when the allocated funding finishes.
Sanofi will pay a separate $120 million for the drugs, of which Regeneron will allocate up to $70 million to develop BCMAxCD3 as a treatment for multiple myeloma, a blood cancer that forms in a type of white blood cell called a plasma cell, and up to $50 million to advance MUC16xCD3 for cancers with a mutation of the mucin-16 gene.
Post-opt-in, Sanofi will solely develop BCMAxCD3 but will share half of the global profits with Regeneron once the medicine is commercialized. For MUC16xCD3, Regeneron will lead development in U.S. while Sanofi does the same outside the country, with profits to be shared between the two.
The new agreement does not affect the company's collaboration on Libtayo which was approved by the U.S. Food and Drug Administration last year to treat a type of skin cancer. Libtayo is also being evaluated in a clinical program as a potential treatment for lung, cervical and skin cancers.