Astellas Extends License of Regeneron's VelocImmune Antibody Technology through 2023

August 12, 2010

Astellas Pharma, Inc. (Tokyo, Japan) has extended its non-exclusive license agreement with Regeneron Pharmaceuticals, Inc. (Tarrytown, NY) through 2023. The agreement allows Astellas to use Regeneron?s VelocImmune technology in Astellas? internal research programs to discover fully human monoclonal antibody (hMAb) product candidates.

Astellas Pharma, Inc. (Tokyo, Japan) has extended its non-exclusive license agreement with Regeneron Pharmaceuticals, Inc. (Tarrytown, NY) through 2023. The agreement allows Astellas to use Regeneron’s VelocImmune technology in Astellas’ internal research programs to discover fully human monoclonal antibody (hMAb) product candidates.

Regeneron's VelocImmune platform generates hMAbs to address clinically relevant targets of therapeutic interest. The VelocImmune mouse, unlike other hMAb mice, mounts a robust immune response that is virtually indistinguishable from that of a wild type mouse.

Astellas will pay $165 million upfront and another $130 million in June 2018, unless it terminates the agreement before that date. After commercialization of any antibody products discovered using VelocImmune, Astellas will pay a mid-single-digit royalty on product sales.

In March 2007, Astellas and Regeneron entered into a six-year VelocImmune license agreement according to which Astellas made license payments of $20 million per year in 2007 through 2010. This amendment supersedes the original agreement and as such, Astellas will no longer make annual license payments in 2011 and 2012. Approximately 20 monoclonal antibody projects using VelocImmune technology are ongoing at Astellas and Agensys, Inc., a US affiliate of Astellas.