Biotech Values

[DewDiligence]

REGN, NVS Rework IL-1 Collaborations Inked in 2003

[There are two separate collaborations here for two drugs: each company receives royalties on one drug and pays royalties on one drug.]

http://finance.yahoo.com/news/Regeneron-Converts-bw-15498555.html

›Regeneron Converts Interleukin-1 Antibody Opt-In Rights to Royalty Agreement

Thursday June 11, 2009, 8:01 am EDT

TARRYTOWN, N.Y.--(BUSINESS WIRE)--Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN ) announced today that it has entered into two royalty agreements with Novartis Pharma AG that replace a previous collaboration and license agreement.

Under the first royalty agreement, Regeneron is entitled to receive royalties on worldwide sales of Novartis’ canakinumab (ACZ885), a fully human anti-interleukin-IL1-beta antibody currently under regulatory review to treat cryopyrin-associated periodic syndrome (CAPS) and in development for a number of other inflammatory diseases. On the basis of the same agreement Regeneron waives its rights to opt-in to the development and commercialization of canakinumab.

Under the second royalty agreement, Novartis is entitled to receive royalties on worldwide sales of a second-generation interleukin-1 Trap, should Regeneron decide to proceed in the development of this Trap.

The financial terms of both agreements are identical in relation to stepped royalties to be paid on the basis of future sales. They do not include any upfront or milestone payments or any sharing of development expenses.

The royalty agreements replace a 2003 collaboration and license agreement under which Regeneron had the right to opt in to the development and commercialization of Novartis’ interleukin-1 antibody and Novartis had the right to opt in to the development and commercialization of Regeneron’s second-generation interleukin-1 Trap. That collaboration and license agreement has been terminated.‹