Regeneron to pay Sonoma $75M upfront in pact to develop autoimmune disease drugs
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Sonoma Biotherapeutics and Regeneron Pharmaceuticals (NASDAQ:REGN) signed an agreement to discover, develop and sell novel regulatory T cell (Treg) therapies for autoimmune diseases.
Under the agreement, Sonoma will get $75M upfront, which includes $45M cash and $30M equity investment by Regeneron.
Sonoma is also eligible to receive a $45M development milestone payment.
The two companies will jointly research and develop Treg cell therapies for ulcerative colitis, Crohn's disease and two other undisclosed uses, with a Regeneron option for a fifth indication.
The companies will equally co-fund research and development for all potential products and share equally any future commercial expenses and profits.
Regeneron will have the option to lead late-stage development and commercialization on all products globally, with Sonoma retaining rights to co-promote all such products in the U.S., the companies added.
Sonoma will retain full ownership of its lead cell therapy SBT-77-7101 and other programs in development.
The collaboration will use Regeneron's VelociSuite technologies to discover and characterize fully human antibodies and T cell receptors (TCRs) with Sonoma's approach to develop and manufacture gene-modified Treg cell therapies.
"This collaboration will combine Regeneronâs proven technology and clinical expertise with Sonoma Bioâs proprietary Treg platform and Treg research enterprise to develop therapies that restore balance to the immune system and potentially cure disease," said Sonoma's Co-founder and CEO Jeff Bluestone.
REGN +0.58% to $825.14 premarket March 28