Regeneron links with Avalanche Biotech in $640 million-plus ophthalmic deal

Aiming to expand its ophthalmic portfolio, USA-based biotech firm Regeneron Pharmaceuticals (Nasdaq: REGN) has entered into a collaboration with privately-held Avalanche Biotechnologies on a broad collaboration to discover, develop and commercialize novel gene therapy products for the treatment of ophthalmologic diseases.

The collaboration covers novel gene therapy vectors and proprietary molecules, discovered jointly by Avalanche and Regeneron, and developed using the Avalanche Ocular BioFactor, an adeno-associated virus (AAV)-based, proprietary, next-generation platform for the discovery and development of gene therapy vectors for ophthalmology.

Under the terms of the deal, Avalanche will receive an upfront cash payment, contingent payments of up to $640 million on the achievement of certain development and regulatory milestones, plus a royalty on worldwide net sales of collaboration products. The collaboration covers up to eight distinct therapeutic targets, and Regeneron will have exclusive worldwide rights for each product it moves forward in clinical development. In addition, Avalanche has the option to share in development costs and profits for products directed toward two collaboration therapeutic targets selected by Avalanche.