Sanofi and Regeneron expand immunology drug alliance

Sanofi and Regeneron Pharmaceuticals are expanding their collaboration to co-develop and market immunology drugs. Under the terms of the agreement, Regeneron could receive up to $8 billion, including an upfront payment of $1 billion from Sanofi, with an additional $7 billion contingent on meeting specific development, regulatory, and commercial milestones.

The expanded deal includes four next-generation immunology drug candidates developed by Regeneron. Regeneron also holds the option to include Sanofi’s Lunsekimig, which is currently being tested for chronic obstructive pulmonary disease. As part of the agreement, the companies have also settled previous legal disputes related to their partnership.

Sanofi CEO Belen Garijo described the move as a deliberate step to drive innovation, while Regeneron CEO Leonard S. Schleifer noted the alliance aims to build upon the success of their blockbuster drug, Dupixent. Following the announcement, RBC maintained a ‘Sector Perform’ rating on Sanofi with a price target of 80 euros, viewing the deal as an effective way to bolster Sanofi’s immunology pipeline and secure successors to Dupixent.