Sanofi-Regeneron Effort Targets Cancer Therapies

Sanofi has agreed to invest nearly $2.2 billion in an effort with Regeneron to develop PD-1 inhibitors and other cancer-fighting antibodies.

Under the agreement, Sanofi will pay Regeneron $640 million upfront and the drugmakers will jointly fund $1 billion — $750 million from Sanofi and $250 million from Regeneron — for discovery through proof-of-concept development of monotherapy and novel combinations of immune-oncology antibodies.

The companies will also spend $650 million to develop REGN2810, a PD-1 inhibitor, which is in Phase 1 testing and expected to begin clinical trials next year. The deal also includes a $375 million milestone bonus for Regeneron if annual sales of a PD-1 product exceed $2 billion.

In July, the drugmaker announced it was restructuring its operations, effective Jan. 1, 2016, to include a new specialty care division that will focus partly on oncology.

Sanofi and Regeneron have successfully developed other drugs together, including Praluent (alirocumab), which received FDA approval last week to treat high cholesterol. — Jonathon Shacat