Sanofi pledges $2.17 billion in new deal with Regeneron

French pharma major Sanofi (Euronext: SAN) has entered into a new global collaboration with long-time partner US biotech firm Regeneron Pharmaceuticals (Nasdaq: REGN) to discover, develop and commercialize new antibody cancer treatments in the emerging field of immuno-oncology, an area of research that is attracting ever more attention, with Sanofi committing an initial $2.17 billion to the deal.

As part of the agreement, the two companies will jointly develop a programmed cell death protein 1 (PD-1) inhibitor currently in Phase I testing, and plan to initiate clinical trials in 2016 with new therapeutic candidates based on ongoing, innovative preclinical programs.

Sanofi’s existing collaboration with Regeneron has already delivered the potential blockbuster cholesterol lowerer Praluent (alirocumab), which last Friday gained US Food and Drug Administration approval, as well as a  favorable opinion from the European Medicines Agency’s advisory committee.

Regeneron to get $640 million upfront