Sanofi in-licenses novel antibiotics from Rib-X; files tesamorelin in Israel

French drug major Sanofi (Euronext: SAN) has entered into an exclusive worldwide accord with privately-held USA-based Rib-X Pharmaceuticals for novel classes of antibiotics resulting from Rib-X’s RX-04 program for the treatment of resistant Gram-positive and resistant Gram-negative pathogens.

Under the terms of the deal, Rib-X will receive $10 million in an upfront payment and is also eligible for an additional $9 million in near-term research-based milestones and further payments for the achievement of research, preclinical, regulatory and commercial milestones. Sanofi has the right to develop multiple products under this agreement. Except for those assets licensed to Sanofi through the agreement, Rib-X retains its rights to the discovery platform and its future programs.

The agreement could result in up to $86 million in development and regulatory milestones on a per product basis. Commercial milestones could exceed $100 million on a per product basis. Rib-X retains a co-promotion option in the USA on one of the molecules coming from the collaboration. Royalty rates on net sales could reach low double digit figures.