Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) and Sanofi SA (NASDAQ:SNY) are expanding their extensive, two-decade-long antibody partnership to jointly develop and commercialize several next-generation treatments.
The companies initially partnered in November 2007 to discover, develop, and commercialize fully human therapeutic antibodies utilizing Regeneron’s proprietary VelociSuite of technologies (including VelocImmune).
Blockbuster Partnership
The companies intend to build upon the massive global success of their jointly established medicine, Dupixent (dupilumab).
Currently, healthcare providers prescribe Dupixent to more than 1.5 million people worldwide across nine distinct indications.
In the second quarter, Dupixent sales increased by 37.6% to 5.154 billion euros, above 5 billion euros per quarter for the first time.
Sanofi CEO Belén Garijo said, "Dupixent sales are now expected to reach around €25 billion in 2030, complemented by approximately €10 billion from Pharma launches."
The French biotech signaled a tougher, more disciplined approach to research and development as the new CEO said recent pipeline setbacks reflected weaknesses in decision-making rather than the company’s scientific capabilities.
Massive Financial Commitments and Cost Sharing
To secure the expanded license and collaboration agreement, Sanofi will deliver a $1 billion upfront payment to Regeneron.
Furthermore, the contract outlines the potential for Regeneron to earn up to an additional $7 billion through various development, regulatory, and commercial milestone payouts.
Moving forward, both companies will divide the development and commercialization expenses for the new therapeutic programs equally. They will also share future profits from these prospective products on a 50:50 basis worldwide.
The existing profit-sharing structure for Dupixent remains entirely unchanged.
Targeting New Clinical Milestones
Under the updated alliance, the partners will co-develop four novel, long-acting antibodies invented by Regeneron. These candidates target specific interleukins, including IL-13, IL-4xIL-13 bispecific, IL-4, and IL-4Rα.
Regeneron already initiated a Phase 1 trial in May 2026 to evaluate the IL-13 antibody REGN20423.
The trial examines the treatment in healthy participants during Part A, before testing patients with atopic dermatitis, or eczema, in Part B. The study expects to enroll roughly 144 subjects and conclude in 2028.
The other three candidates should enter clinical studies in 2027.
REGN/SNY Stock Price Activity: Regeneron Pharmaceuticals shares are trading lower by 3.31% at $733.14, and Sanofi shares are trading lower by 0.38% at $41.08 at the time of publication on Thursday, according to Benzinga Pro data.
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