GDANSK (Oct 1): Sanofi said on Thursday that it would pay US partner Regeneron US$1 billion upfront and up to US$7 billion in milestone payments to bring four new antibodies under the partnership behind their blockbuster eczema drug Dupixent, which sent the French drugmaker's shares 2% higher in early trading.

Like Dupixent, used by more than 1.5 million patients across nine indications, these experimental antibodies target immune signals that drive inflammation in conditions such as eczema, but they are designed to last longer in the body.

Sanofi called the deal a first step in rebuilding its pipeline before Dupixent loses patent protection.

"While the assets are early-stage, the expansion should be viewed positively, as it signals the new CEO's proactive focus on the most important yet addressable uncertainties investors face," Jefferies wrote.

The companies have settled earlier litigation over the collaboration.

Regeneron is to lead research and development, while Sanofi is to lead global sales under the expanded partnership.

They will split costs and profits of the expanded partnership equally; existing Dupixent profit-sharing terms remain unchanged.

Regeneron also has the option to join Sanofi's experimental drug lunsekimig once its late-stage trials for chronic obstructive pulmonary disease are finished.

Uploaded by Liza Shireen Koshy