Sonoma Biotherapeutics, Inc., a clinical-stage biotechnology company developing engineered regulatory T cell (Treg) therapies for autoimmune and inflammatory diseases, received a $45 million milestone payment from Regeneron Pharmaceuticals under the companies’ autoimmune alliance.
 
In March 2023, Sonoma Bio and Regeneron entered a collaboration and license agreement to research, develop and commercialize Treg cell therapies for inflammatory bowel disease and two other undisclosed indications, with a Regeneron option for a fifth indication. The collaboration integrates Regeneron’s VelociSuite technologies for the discovery and characterization of fully human antibodies and T cell receptors (TCRs) with Sonoma Bio’s approach to developing and manufacturing gene-modified Treg cell therapies.
 
Under the agreement, Sonoma Bio received $75 million upfront, which included a $30 million equity investment in Sonoma Bio by Regeneron. Sonoma Bio was also eligible to receive an additional $45 million development milestone payment, which has now been achieved. The companies are equally funding R&D for all potential products and will share any future commercial expenses and profits. Regeneron will have the option to lead late-stage development and commercialization on all products globally, with Sonoma retaining rights to co-promote all such products in the U.S.
 
“This payment marks a significant milestone in our evolution as a company and our collaboration with Regeneron, which has been going extremely well,” said Jeff Bluestone, Ph.D., Chief Executive Officer of Sonoma Bio. “The cutting-edge Regeneron technology for target identification and animal models, combined with Sonoma Bio’s Treg and cell therapy expertise, has enabled an effective collaboration in developing new treatment options for patients suffering from devastating autoimmune diseases.”