Astellas to pay $295 million to extend license of Regeneron's VelocImmune antibody technology through 2023; Regeneron narrows loss

USA-based Regeneron Pharmaceuticals says that Japan's Astellas has extended through 2023 the non-exclusive license agreement that allows the Japanese drug major to utilize Regeneron's VelocImmune technology in its internal research programs to discover fully human monoclonal antibody product candidates.

Under the terms of the new deal, Astellas ' Japan's second-largest drugmaker - will pay $165 million upfront and another $130 million in June 2018 unless it terminates the agreement prior to that date. Upon commercialization of any antibody products discovered utilizing VelocImmune, Astellas will pay a mid-single-digit royalty on product sales.

In March 2007, Astellas and Regeneron entered into a six-year VelocImmune license agreement pursuant to which Astellas made license payments of $20 million per year in 2007 through 2010. This amendment supersedes the original accord and, as such, Astellas will no longer make annual license payments in 2011 and 2012. Approximately 20 monoclonal antibody projects using VelocImmune technology are ongoing at Astellas and its US affiliate Agensys.