Cellectis and Regeneron Sign an Agreement Over the Use of Homologous Recombination Technology

Cellectis SA has announced the signature of an agreement with Regeneron Pharmaceuticals, Inc. over the use of Cellectis' patents covering certain uses of homologous recombination for the generation of human therapies, including the development of fully human monoclonal antibodies.

As part of the agreement, Cellectis will receive an upfront of 12,450,000$ from Regeneron. In addition, Regeneron will invest in Cellectis' equity.

The agreement resolves a dispute between the two companies related to the interpretation of a license agreement entered into by and between Cellectis and Regeneron in December 2003 pursuant to which Regeneron licensed certain patents and patent applications relating to a process for the specific replacement of a copy of a gene in the receiver genome by homologous recombination.

Pursuant to the agreement, Regeneron will make an up-front payment to Cellectis in the amount of $12,450,000. In addition, Regeneron will pay Cellectis a low single-digit royalty based on revenue received by Regeneron from any future licenses or sales of Regeneron's VelociGene® or VelocImmune® products and services.

No royalties are payable with respect to Regeneron’s VelocImmune license agreements with AstraZeneca UK Limited and Astellas Pharma Inc. or Regeneron’s November 2007 collaboration agreement with sanofi-aventis. Moreover, due to other considerations in the agreement, no royalties are payable on any revenue from commercial sales of antibodies from Regeneron’s VelocImmune technology.