Transaction Case Studies

Facilitating negotiations between US and Japan to speed deal execution

Situation Assessment

• Regeneron is a publically traded, leading science based biopharmaceutical company that discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. It is developing a late-stage antibody for the treatment of pain:
  • fasinumab (REGN475) is a fully-humanized monoclonal antibody against nerve growth factor (NGF) in late-stage development for the treatment of musculoskeletal pain
• The company finalized a term sheet with Mitsubishi Tanabe Pharmaceutical Corporation (MTPC) for the exclusive development and commercialization rights to fasinumab in Japan & other Asian countries.
• Regeneron engaged Locust Walk’s Asia Team to assist with negotiations to expedite the closing of the definitive Collaboration Agreement with MTPC.

Key Activities

With its bilingual staff, Locust Walk Asia worked closely with the Regeneron team and helped ensure mutual understanding of key terms in the Collaboration Agreement:

• Locust Walk advised the Company on key issues pertaining to Japan and relevant to the Agreement, including pricing, distribution, and development.
• Locust Walk participated in telephone and face-to-face meetings in both the US and Japan between the Company and MTPC, and assisted with communications both in English and Japanese
• Locust Walk met with key personnel at MTPC in Tokyo to help facilitate mutual understanding of certain technical issues

Successful Outcome

• On October 1, 2015, Regeneron and MTPC announced the signing of a Collaboration Agreement granting MTPC the exclusive right to develop and commercialize fasinumab in Japan, South Korea, Taiwan, Indonesia, Thailand, Philippines, Malaysia, Singapore, Vietnam, Myanmar, and Sri Lanka.
• Regeneron will receive up to $55M in upfront and other near-term payments. The agreement provides for additional payments to Regeneron of up to $170M in R&D reimbursement payments and development milestones. Regeneron is also eligible for additional one-time purchase price adjustment payments of up to $100M total upon achievement of specified annual net sales.
• This significant deal represents one of the largest single-product transactions for the Japan/Asia pharmaceutical market.

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