Entering into strategic alliances enables Regeneron to enhance its product development programs by increasing access to knowledge, experience, expertise, and human and financial resources. Regeneron also looks for strategic licensing opportunities to generate revenue from its proprietary technologies.

Strategic Alliances

The sanofi-aventis Group - Fully-human Therapeutic Antibodies

Regeneron and sanofi-aventis entered into a global strategic collaboration in November 2007 to discover, develop, and commercialize fully-human therapeutic antibodies utilizing Regeneron's proprietary VelociSuite of technologies.

Sanofi-aventis made an $85 million up-front payment and will fund up to $475 million of research through 2012, with an option to extend the agreement for up to an additional three years. Sanofi-aventis will have the exclusive option to co-develop each drug candidate in the collaboration portfolio. Development costs will be shared between the two companies with sanofi-aventis funding development costs up front and Regeneron reimbursing half of the development costs from its share of future profits.

Three human antibodies developed under the sanofi-aventis collaboration are in clinical development: REGN88, an antibody to the interleukin-6 (IL-6R) that is being evaluated in rheumatoid arthritis; REGN421, an antibody to delta-like ligand 4 (Dll4) that is in development to disrupt angiogenesis in patients with cancer; and REGN475, an antibody against nerve growth factor (NGF) that is in development for the treatment of pain. Sanofi-aventis will take the lead in commercialization activities, but Regeneron will have the right to co-promote all collaboration products worldwide. In the U.S., profits will be shared equally; outside the U.S., profits will be split on a pre-determined sliding scale.

The sanofi-aventis Group - Aflibercept (VEGF Trap)

Regeneron and sanofi-aventis, an industry leader in the field of oncology, have a global collaboration to develop and commercialize aflibercept in oncology. Regeneron and sanofi-aventis will share promotion rights and profits from aflibercept sales, except in Japan where Regeneron is entitled to receive a royalty of approximately 35 percent of sales. Regeneron may also receive up to $400 million in milestone payments upon receiving specified marketing approvals. Sanofi-aventis funds all development expenses incurred by both companies during the term of the agreement. Should the collaboration become profitable, Regeneron will reimburse sanofi-aventis for 50 percent of the development expenses.

Bayer HealthCare, LLC - VEGF Trap-Eye

Regeneron and Bayer HealthCare, one of the leading specialty pharmaceutical companies in the world, are collaborating on the global development of VEGF Trap-Eye for the treatment of eye disease by local administration, including the neovascular form of wet Age-related Macular Degeneration (AMD), diabetic eye diseases, and other eye diseases and disorders. The companies share the costs of development through an integrated global plan. Bayer HealthCare will market the VEGF Trap-Eye outside the U.S. where the companies will share equally in profits from future sales. Regeneron may also earn up to $225 million in development and sales milestone payments. Should the collaboration become profitable, Regeneron will reimburse Bayer HealthCare for 50 percent of the development costs that it has incurred under the agreement. Within the U.S., Regeneron retains exclusive commercialization rights to VEGF Trap-Eye and is entitled to all profits from any future sales.

VelocImmune^® License Agreements

VelocImmune, Regeneron's novel technology for producing fully-human monoclonal antibodies, is part of the Company's suite of proprietary, interrelated technology platforms designed to provide Regeneron with its next generation of therapeutic candidates.

In 2007, Regeneron entered into non-exclusive license agreements with AstraZeneca and Astellas to allow those companies to utilize the VelocImmune technology in their internal research programs to discover human monoclonal antibody products. Under both agreements, Regeneron licensees made a $20 million up-front payment and agreed to make up to five additional annual payments of $20 million, subject to the ability to terminate the agreement under specified terms. Regeneron also is eligible to receive a mid-single-digit royalty on sales of any future antibody products discovered by the licensees using the VelocImmune technology.

Academic VIP Program

In September 2008, Regeneron launched its Academic VelocImmune Investigators Program (Academic VIP) when the Company entered into an agreement to provide researchers at Columbia University Medical Center with access to the VelocImmune technology platform. in March 2009 Regeneron entered into a similar Academic VIP agreement with The University of Texas Southwestern Medical Center at Dallas. Under the agreements, scientists at the universities will use VelocImmune mice to generate antibodies against their research targets and will conduct research to discover potential human therapeutics based on the antibodies. Regeneron has an exclusive option to license the antibodies for development and commercialization as therapeutic or diagnostic products.

For inquiries regarding licensing, collaboration opportunities, or the Academic VIP Program
please contact us at business business.development@regeneron.com.