Regeneron expands VEGF pact with Aventis to include Japan

By Ted A. Knutson

Washington, Dec. 22 - Regeneron Pharmaceuticals, Inc. and sanofi-aventis have expanded their collaborative development of the Vascular Endothelial Growth Factor (VEGF) Trap to now include Japan.

With the change, the companies said they have expanded the territories in which the companies are collaborating worldwide in all indications, except for intraocular delivery to the eye.

As part of the expansion to Japan, Regeneron will receive an upfront payment of $25 million and milestone payments of up to $40 million related to potential regulatory approvals of the VEGF Trap in Japan. Regeneron will also receive a royalty of about 35% of annual sales of the VEGF Trap in Japan, subject to potential adjustments.

Under the terms of the amended agreement, Regeneron is eligible to receive total milestone payments of up to $400 million, which includes up to $360 million related to potential regulatory approvals of the VEGF Trap in the United States and the European Union.

In addition, the company is entitled to share equally in any profits related to VEGF Trap sales outside Japan.

sanofi-aventis is responsible for funding all of the worldwide VEGF Trap development costs under their collaboration. Following commercialization of the VEGF Trap, Regeneron is obligated to reimburse sanofi-aventis for half of the worldwide VEGF Trap development out of Regeneron's share of VEGF Trap profits and Japan royalties.

Regeneron is a Tarrytown, N.Y.-based drug firm.

sanofi-aventis is a Paris-based pharmaceutical company.

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