KaloBios Regains Global Rights To KB001-A From Sanofi Pasteur

(RTTNews) - KaloBios Pharmaceuticals, Inc. (KBIO) said Monday that it has reached an agreement with Sanofi Pasteur, the vaccines division of Sanofi (SNY), to regain all rights to KaloBios' KB001-A program.

Under the agreement, the collaboration and licensing agreement entered into in 2010 has been terminated. Under that collaboration agreement, Sanofi Pasteur had been developing KB001-A, a patented monoclonal antibody targeting Pseudomonas aeruginosa, for Pa pneumonia prevention in the intensive care setting while KaloBios had been developing KB001-A for chronic treatment of Pa lung infections in cystic fibrosis patients.

Sanofi Pasteur agreed to terminate the collaboration and licensing agreement with KaloBios in consideration of low single digit royalties on net sales of KB001-A, subject to a $40 million cap on the aggregate royalties to be paid. In addition, Sanofi Pasteur will be entitled to receive up to 10% of certain sub-license payments or other milestone payments received in the event KaloBios successfully re-partners KB001-A, subject to a separate $40 million cap on the aggregate amount of sub-license payments to be shared with Sanofi Pasteur.

KaloBios also said that it has achieved full enrollment in the 180 patient Phase 2 study evaluating KB001-A in cystic fibrosis subjects with chronic Pa lung infection. The company now expects to release top-line data on that study in early first quarter 2015.