Replies to post #212829 on Biotech Values

[DewDiligence]

SNY, REGN sharply limit I-O partnership—revision has several moving parts:

https://www.prnewswire.com/news-releases/regeneron-and-sanofi-restructure-immuno-oncology-collaboration-for-discovery-and-development-programs-300773538.html

Under the terms of the restructured Agreement:

• Sanofi will pay Regeneron $462 million representing the balance of payments due under the original Immuno-oncology Agreement, which covers the Sanofi share of the immuno-oncology discovery program costs for the last quarter of 2018 and up to $120 million in development costs for the two selected clinical-stage bispecific antibodies, plus the termination fee for the other programs under the original immuno-oncology agreement.

• Sanofi secures the right to opt-in to the BCMAxCD3 and MUC16xCD3 bispecific programs when proof of concept is achieved or when the allocated funding is expended.

• Regeneron will commit up to $70 million to further develop the BCMAxCD3 bispecific antibody for multiple myeloma and up to $50 million to further develop the MUC16xCD3 bispecific for mucin-16 expressing cancers.

• Post opt-in, Sanofi will lead development and commercialization of the BCMAxCD3 bispecific and fund 100 percent of development costs, with Regeneron reimbursing up to 50 percent out of its share of collaboration profits. Sanofi and Regeneron will share global profits equally.

• Post opt-in, Regeneron will lead MUC16xCD3 bispecific development and lead commercialization in the U.S. The companies will share development costs and global profits equally. Sanofi will lead commercialization outside the U.S.

• The companies' ongoing collaboration for the development and commercialization of Libtayo…is unaffected by the amended Discovery and Development Agreement.

• Regeneron retains full rights to its other immuno-oncology programs.