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, the Company's share of losses in connection with Sanofi's commercialization of ZALTRAP^®, recognition of a substantive milestone payment in the third quarter of 2012 related to FDA approval of ZALTRAP, and revenue related to non-refundable up-front payments.

In addition, Sanofi collaboration revenue for the nine months ended September 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 September 30,
Sanofi Collaboration Revenue	2013			2012
ZALTRAP:
Regeneron's share of losses in connection with commercialization of ZALTRAP	$	(6,575	)	$	(7,390	)
Substantive milestone payment				50,000
Reimbursement of Regeneron research and development and other expenses	2,557			2,079
Recognition of deferred revenue related to up-front payments	1,384			2,889
Total ZALTRAP	(2,634		)	47,578
Antibody:
Reimbursement of Regeneron research and development expenses	134,432			94,903
Recognition of deferred revenue related to up-front and other payments	2,162			2,162
Recognition of revenue related to VelociGene^® agreement	399			399
Total Antibody	136,993			97,464
Total Sanofi collaboration revenue	$	134,359		$	145,042



	Nine months ended September 30,
Sanofi Collaboration Revenue	2013			2012
ZALTRAP:
Regeneron's share of losses in connection with commercialization of ZALTRAP	$	(22,581	)	$	(19,525	)
Substantive milestone payment				50,000
Reimbursement of Regeneron research and development and other expenses	7,955			9,124
Recognition of deferred revenue related to up-front payments	4,152			8,260
Total ZALTRAP	(10,474		)	47,859
Antibody:
Reimbursement of Regeneron research and development expenses	341,952			263,504
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	6,486			6,475
Recognition of revenue related to VelociGene agreement	1,197			1,197
Total Antibody	329,635			271,176
Total Sanofi collaboration revenue	$	319,161		$	319,035

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 European and other countries 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 the second quarter of 2013, and is obligated to 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 the second quarter of 2013, and is obligated to 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 September 30,
Bayer HealthCare Collaboration Revenue	2013		2012
Regeneron's net profit in connection with commercialization of EYLEA outside the United States	$	31,769
Sales and substantive development milestone payments	45,000		$	15,000
Cost-sharing of Regeneron EYLEA development expenses	4,844		9,724
Reimbursement of other Regeneron EYLEA expenses	4,993
Recognition of deferred revenue related to up-front and other milestone payments	1,977		1,977
	$	88,583	$	26,701



	Nine months ended September 30,
Bayer HealthCare Collaboration Revenue	2013		2012
Regeneron's net profit in connection with commercialization of EYLEA outside the United States	$	57,186
Sales and substantive development milestone payments	45,000		$	15,000
Cost-sharing of Regeneron EYLEA development expenses	14,482		27,377
Reimbursement of other Regeneron EYLEA expenses	11,995
Recognition of deferred revenue related to up-front and other milestone payments	5,931		5,931
	$	134,594	$	48,308

In the third quarter of 2013, the Company earned a $15.0 million substantive development milestone payment from Bayer HealthCare upon receipt of marketing approval in the European Union for EYLEA for the treatment of macular edema secondary to CRVO. In addition, the Company earned, and recorded as revenue in the third quarter of 2013, two $15.0 million sales milestone payments from Bayer HealthCare upon total aggregate net sales of EYLEA outside the United States exceeding $200 million and $300 million, respectively, over a twelve-month period. In the third quarter of 2012, the Company earned a $15.0 million substantive development milestone payment from Bayer HealthCare upon receipt of marketing approval in Japan for EYLEA for the treatment of wet AMD. The Company may receive an additional $10 million milestone payment related to pricing approval of EYLEA for CRVO in the first major market country outside the United States, and can earn up to $105 million in additional sales milestone payments if twelve-month net sales of EYLEA outside the United States achieve certain specified levels up to $1 billion.