Regeneron To Receive 42.75 Million From Novartis To Satisfy Novartis' Remaining Funding Obligation For Development Of The IL-1 T
Regeneron Also Achieves Development Milestone, Resulting In Loan Forgiveness
Tarrytown, NY. Regeneron Pharmaceuticals, Inc. announced that Novartis Pharma AG has agreed to pay Regeneron $42.75 million to satisfy its obligation to fund development costs for the Interleukin-1 (IL-1) Trap for the nine month period following notification of Novartis' decision to forgo its right to jointly develop the IL-1 Trap and for the two months prior to that notice. A payment of $34.25 million has been received, and a second payment of $8.5 million will be made on or before April 15, 2004. In addition, Novartis forgave all its outstanding loans to Regeneron based on Regeneron's achieving a development milestone, as contemplated in the collaboration agreement entered into by the two companies in March 2003.
The companies agreed that their collaboration with respect to the IL-1 Trap would end on April 15, 2004 and all rights to the IL-1 Trap will then revert to Regeneron. Regeneron and Novartis each retain rights under their agreement to elect to collaborate in the future on the development and commercialization of certain other IL-1 antagonists.
Regeneron plans to initiate a Phase IIb study of the IL-1 Trap in patients with rheumatoid arthritis later in 2004. It also intends to conduct studies of the IL-1 Trap in a variety of other inflammatory diseases where interleukin-1 is believed to play a critical role.
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