Regeneron forms Regeneron Cell Medicine amid acquisition of 2seventy platforms

Regeneron Pharmaceuticals (REGN) announced the formation of Regeneron Cell Medicines based on an agreement with 2seventy bio (TSVT) to acquire full development and commercialization rights to its pipeline of investigational novel immune cell therapies, along with its discovery and clinical manufacturing capabilities. 2seventy bio employees who support the acquired programs will join Regeneron Cell Medicines, a newly formed research & development unit to advance cell therapies and combination approaches in oncology and immunology. In 2018, Regeneron and bluebird bio entered into an agreement to leverage their complementary technologies to discover novel cell therapy approaches to address cancer. Under the original agreement, Regeneron had the right to opt-in to a co-development/co-commercialization arrangement for collaboration targets. Under the terms of the new agreement, Regeneron will acquire full development and commercialization rights of 2seventy bio’s preclinical and clinical stage pipeline and will assume ongoing program, infrastructure and personnel costs related to these programs. There will be an upfront payment of $5 million and a single milestone payment from Regeneron to 2seventy bio for the first major market approval of the first approved product. Regeneron will pay 2seventy bio a low single-digit percent royalty on revenues generated by the products. The transaction is expected to close in the first half of 2024 subject to certain closing conditions including SEC-filings required by 2seventy bio and landlord consent of the sublease agreements. To realize the full potential of these programs and capabilities, Regeneron Cell Medicines has been created to advance the next generation of cell therapies and explore combinations with Regeneron’s proprietary antibodies and bispecifics. An estimated 150 employees from 2seventy bio will transition to Regeneron to continue their work on cell therapy programs and will remain located in Cambridge, MA and Seattle, WA. Philip Gregory, D.Phil., currently the Chief Scientific Officer of 2seventy bio, will be appointed Senior Vice President and Head of Regeneron Cell Medicines upon closing of the transaction.