Regeneron Acquires Global Rights to Libtayo from Sanofi in $1.1 Billion Deal

Intelligent Finance APP learned that Regeneron (REGN.US) agreed to purchase the immuno-oncology drug Libtayo (Cemiplimab) from its partner Sanofi (SNY.US) for $1.1 billion. This transaction is an extension of the global immuno-oncology licensing and collaboration agreement signed by both parties in 2015. Prior to the transaction, the two parties equally shared the global sales profits of Libtayo and co-commercialized Libtayo in the United States, while Sanofi was solely responsible for commercialization in the rest of the world.

Under the agreement, Sanofi will transfer all rights to Libtayo (including the rights to develop, commercialize, and manufacture globally) to Regeneron, which will obtain the global exclusive license for Libtayo. In return, Sanofi will receive an upfront payment of $900 million and is eligible to receive a milestone payment of $200 million upon the drug achieving certain regulatory and sales targets. Additionally, Sanofi will receive 11% royalties on the global net sales profit of Libtayo.

Libtayo is a prescription medicine used to treat cutaneous squamous cell carcinoma (CSCC), locally advanced basal cell carcinoma (BCC), and non-small cell lung cancer (NSCLC). According to Regeneron's previously released financial results for the fourth quarter and full year of 2021, Libtayo generated approximately $306 million in net product sales revenue for the company in 2021.

As of press time, Regeneron's stock price fell nearly 5%.