Sanofi and Regeneron Pharmaceuticals have said the companies may transform their antibody partnership, which involves Kevzara (sarilumab) and Praluent (alirocumab) drugs, into a royalty-based agreement.

The restructured alliance will potentially provide Sanofi with exclusive rights to Kevzara worldwide and exclusive rights to Praluent in markets outside of the US.

Under an arrangement, Regeneron will obtain sole rights to Praluent in the US. The companies will have to fund the development and commercialisation activities in their respective territories alone.

Sanofi and Regeneron said that these changes to the antibody partnership are meant to enhance efficiency and optimise operations for the products.

The partners expect to finalise the proposed antibody agreement in the first quarter of next year. Meanwhile, the ongoing alliance for Dupixent (dupilumab) will not undergo any revisions.

Sanofi initially partnered with Regeneron in November 2007 for the discovery, development and commercialisation of fully-human therapeutic antibodies.

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As part of the collaboration, Sanofi gained about 19% ownership in Regeneron.

Sanofi also received the exclusive option to co-develop each drug candidate resulting from the alliance.

The partners agreed to share development costs, with Sanofi responsible for development costs and Regeneron reimbursing 50% of the costs from its share of profits.

In January, Sanofi and Regeneron also reformed their immuno-oncology discovery and development agreement signed in 2015.

The restructured deal allows the companies to co-develop two clinical-stage bispecific antibody programmes, BCMAxCD3 and MUC16xCD3.

Sanofi announced the plans to revise its antibody partnership with Regeneron after its CEO Paul Hudson unveiled a new growth strategy.

The French pharmaceutical giant will restructure into three core global business divisions, Specialty Care, Vaccines and General Medicines. Its Consumer Healthcare unit is set to operate as a standalone entity.