Nirsevimab economy simplified with new license agreement with Sanofi and termination of participation agreement with AstraZeneca

The alignment brings Sobi benefits through simplification, revenue recognition only, and greater flexibility

STOCKHOLM, April 9, 2023 /PRNewswire/ — Sobi® today announced a streamlining and simplification of contract economics for nirsevimab. In January 2019, Sobi completed the acquisition of Synagis® (palivizumab) from AstraZeneca in the US, as well as the right to AstraZeneca’s full share of US profits and losses for nirsevimab. Synagis is a medicine used to prevent serious lung disease in children caused by respiratory syncytial virus (RSV). Nirsevimab is under regulatory review in the US and was recently approved in the EU for the prevention of RSV lower respiratory tract disease in newborns and infants.

New license agreement with Sanofi

Through a new licensing agreement with Sanofi, Sobi will receive a quarterly royalty on net US sales of nirsevimab. Royalty will begin at 25 percent at launch, expected in 2023, continue in 2024 and gradually increase each year from 2025 to 2028 to a range of 30 to 35 percent of net sales. After 2028, royalties will remain at this level.

As part of the new license agreement with Sanofi, Sobi will pay Sanofi $66 million as reimbursement for prior research and development costs for nirsevimab in the United States, with Sobi owing no further payments.

Termination of the participation agreement with AstraZeneca

Through a separate agreement with AstraZeneca, Sobi terminated and completed the nirsevimab participation agreement entered into at the end of 2018 January 2019. This termination deprives Sobi of its right to AstraZeneca’s full share of the US profits and losses for nirsevimab, including US development and commercialization costs and the obligation to pay future milestones and royalties to AstraZeneca. Sobi pays AstraZeneca U.S. DOLLAR…