Regeneron Pharmaceuticals, Sonoma Biotherapeutics announce collaboration

Sonoma Biotherapeutics and Regeneron Pharmaceuticals announced a collaboration to apply their scientific and clinical expertise and respective technology platforms to the discovery, development and commercialization of novel regulatory T cell therapies for autoimmune diseases. The collaboration will bring together Regeneron’s industry-leading VelociSuite technologies for the discovery and characterization of fully human antibodies and T cell receptors with Sonoma Biotherapeutics’ pioneering approach to developing and manufacturing gene-modified Treg cell therapies. Under the terms of the agreement, Sonoma Biotherapeutics will receive $75M in upfront payments, which includes a $30M equity investment in Sonoma by Regeneron. Sonoma is also eligible to receive a $45M development milestone payment. Regeneron and Sonoma will jointly research and develop Treg cell therapies for ulcerative colitis, Crohn’s disease and two other undisclosed indications, with a Regeneron option for a fifth indication. The parties will equally co-fund research and development for all potential products and share equally any future commercial expenses and profits. Regeneron will have the option to lead late-stage development and commercialization on all products globally, with Sonoma retaining rights to co-promote all such products in the United States. Sonoma will also retain full ownership of its lead cell therapy candidate, SBT-77-7101, and other programs in development.