Collaboration Revenue

Sanofi Collaboration Revenue

The collaboration revenue the Company earned from Sanofi, as detailed below, consisted primarily of reimbursement for research and development expenses that the Company incurred, recognition of the Company's share of losses in connection with Sanofi's commercialization of ZALTRAP^®, and recognition of revenue related to non-refundable up-front payments.

In addition, Sanofi collaboration revenue for the three months and six months ended June 30, 2013 was reduced by two $10.0 million up-front payments to Sanofi in connection with the Company's acquisition from Sanofi of full exclusive rights to two families of novel antibodies, as described below.



	Three months ended June 30,
Sanofi Collaboration Revenue	2013			2012
ZALTRAP:
Regeneron's share of losses in connection with commercialization of ZALTRAP	$	(8,216	)	$	(8,430	)
Reimbursement of Regeneron research and development and other expenses	2,835			4,225
Recognition of deferred revenue related to up-front payments	1,384			2,889
Total ZALTRAP	(3,997		)	(1,316		)
Antibody:
Reimbursement of Regeneron research and development expenses	106,965			87,746
Up-front payments to Sanofi for acquisition of rights related to two antibodies	(20,000		)
Recognition of deferred revenue related to up-front and other payments	2,162			2,160
Recognition of revenue related to VelociGene^® agreement	399			398
Total Antibody	89,526			90,304
Total Sanofi collaboration revenue	$	85,529		$	88,988



	Six months ended June 30,
Sanofi Collaboration Revenue	2013			2012
ZALTRAP:
Regeneron's share of losses in connection with commercialization of ZALTRAP	$	(16,005	)	$	(12,135	)
Reimbursement of Regeneron research and development and other expenses	5,398			7,045
Recognition of deferred revenue related to up-front payments	2,767			5,372
Total ZALTRAP	(7,840		)	282
Antibody:
Reimbursement of Regeneron research and development expenses	207,520			168,601
Up-front payments to Sanofi for acquisition of rights related to two antibodies	(20,000		)
Recognition of deferred revenue related to up-front and other payments	4,324			4,313
Recognition of revenue related to VelociGene agreement	798			797
Total Antibody	192,642			173,711
Total Sanofi collaboration revenue	$	184,802		$	173,993

Sanofi commenced sales of ZALTRAP (ziv-aflibercept) Injection for Intravenous Infusion, in combination with 5-fluorouracil, leucovorin, irinotecan ("FOLFIRI"), for patients with metastatic colorectal cancer (“mCRC”) that is resistant to or has progressed following an oxaliplatin-containing regimen, in the United States in the third quarter of 2012 and in certain countries in Europe in the first quarter of 2013. The Company and Sanofi globally collaborate on the development and commercialization of ZALTRAP. Under the terms of the companies' September 2003 collaboration agreement, as amended, Regeneron and Sanofi share co-promotion rights and profits and losses on sales of ZALTRAP outside of Japan. In Japan, the Company is entitled to a royalty on sales of ZALTRAP.

Acquisition from Sanofi of Rights to PDGF and Ang2 in Ophthalmology

In May 2013, the Company acquired from Sanofi full exclusive rights to two families of novel antibodies invented at Regeneron and previously included in the Company's antibody collaboration with Sanofi. The Company acquired full rights to antibodies targeting the PDGF (platelet derived growth factor) family of receptors and ligands in ophthalmology and all other indications and to antibodies targeting the Ang2 (angiopoietin-2) receptor and ligand in ophthalmology. Antibodies to the PDGF receptor and Ang2 are currently in preclinical development for use in ophthalmology.

With respect to PDGF antibodies, the Company made a $10.0 million up-front payment to Sanofi in May 2013, and will pay up to $40 million in potential development milestone payments and royalties on any future sales. With respect to Ang2 antibodies in ophthalmology, the Company also made a $10.0 million up-front payment to Sanofi in May 2013, and will pay a potential $5 million development milestone payment and royalties on any future sales.

Bayer HealthCare Collaboration Revenue

Bayer HealthCare commenced sales of EYLEA for the treatment of wet AMD in the fourth quarter of 2012 following receipt of regulatory approvals in the European Union and other regions. The Company and Bayer HealthCare globally collaborate on the development and commercialization of EYLEA outside of the United States.

The collaboration revenue the Company earned from Bayer HealthCare is detailed below:



	Three months ended June 30,
Bayer HealthCare Collaboration Revenue	2013		2012
Regeneron's net profit in connection with commercialization of EYLEA outside the United States	$	19,055
Cost-sharing of Regeneron EYLEA development expenses	3,667		$	7,147
Reimbursement of other Regeneron EYLEA expenses	6,405
Recognition of deferred revenue related to up-front and other milestone payments	1,977		1,977
	$	31,104	$	9,124



	Six months ended June 30,
Bayer HealthCare Collaboration Revenue	2013		2012
Regeneron's net profit in connection with commercialization of EYLEA outside the United States	$	25,417
Cost-sharing of Regeneron EYLEA development expenses	9,638		$	17,653
Reimbursement of other Regeneron EYLEA expenses	7,002
Recognition of deferred revenue related to up-front and other milestone payments	3,954		3,954
	$	46,011	$	21,607