Regeneron and Sanofi-Aventis sign Ab R&D accord

New York, USA-based Regeneron Pharmaceuticals and French drugmaker Sanofi-Aventis have entered into an agreement to discover, develop and commercialize fully-human therapeutic antibodies based on the former's proprietary VelociSuite technology. Under the terms of the deal, Sanofi will increase its holding in Regeneron from 4% to 19% through the acquisition of 12 million new common shares for $26.00 each. The French firm has also agreed to make an $85.0 million upfront payment, and will provide a further $475.0 million in research funding over the next five years. In return, Sanofi has an option to co-develop candidates identified by the project, the first of which is likely to be an Ab targeting the interleukin-6 receptor for the treatment of rheumatoid arthritis. Commercialization will be led by Sanofi, although Regeneron has co-promotion rights. Profits from US sales will be split equally, while revenues from elsewhere will be shared on a sliding scale.