Sonoma Biotherapeutics Gets $45M Milestone from Regeneron in Ongoing Collaboration

Sonoma Biotherapeutics, Inc., a clinical-stage biotechnology company specializing in engineered regulatory T cell (Treg) therapies for autoimmune and inflammatory diseases, announced the receipt of a $45 million milestone payment from Regeneron Pharmaceuticals, Inc. This payment is part of an ongoing collaboration aimed at discovering, developing, and commercializing Treg therapies for autoimmune conditions.

Jeff Bluestone, Ph.D., Chief Executive Officer of Sonoma Bio, emphasized the importance of this milestone, stating that the collaboration with Regeneron has been highly productive. He highlighted the synergy between Regeneron's advanced technology for target identification and animal models and Sonoma Bio’s expertise in Treg and cell therapy. This partnership has been pivotal in creating new treatment options for patients with severe autoimmune diseases.

The collaboration between Sonoma Bio and Regeneron began in March 2023 through a collaboration and license agreement. This agreement focuses on researching, developing, and commercializing Treg cell therapies for inflammatory bowel disease and two other undisclosed conditions. Regeneron also has an option for a fifth indication. The partnership integrates Regeneron's VelociSuite® technologies, known for the discovery and characterization of fully human antibodies and T cell receptors (TCRs), with Sonoma Bio’s innovative approach to gene-modified Treg cell therapies.

Under the agreement, Sonoma Bio initially received $75 million in upfront payments, including a $30 million equity investment from Regeneron. With the recent achievement of a development milestone, Sonoma Bio has now received an additional $45 million. Both companies are equally funding research and development for all potential products and will share future commercial expenses and profits equally. Regeneron retains the option to lead late-stage development and global commercialization, while Sonoma Bio retains the rights to co-promote all products in the United States.

Sonoma Bio continues to hold full ownership of its lead Treg cell therapy candidate, SBT-77-7101, along with other ongoing programs. Currently, the company is conducting two Phase 1 trials of SBT-77-7101, targeting rheumatoid arthritis and hidradenitis suppurativa.

Sonoma Biotherapeutics is a cutting-edge biotechnology company focused on the development of engineered regulatory T cell (Treg) therapies intended to restore immune system balance and treat severe autoimmune and inflammatory diseases. The company, founded by leaders in Treg biology and cell therapy, utilizes proprietary platform technologies and innovative approaches to create a new generation of targeted and durable Treg cell therapies. Sonoma Biotherapeutics operates out of South San Francisco and Seattle.