The document discusses revenue recognition under collaborative arrangements for biotechnology companies. It provides an overview of BIO and its advocacy on this issue. Case studies are presented on revenue recognition for collaborations between Affymax and Takeda, Regeneron and sanofi-aventis, and Adolor and Pfizer. The document outlines best practices for biotechs in determining accounting for collaborations and communicating about new collaborative arrangements. It also provides recommendations from BIO's study for FASB and SEC to provide additional guidance.

12. Regeneron Collaboration Agreements * 50% repayment from profits ** plus $475MM of research funding over 5 years Oncology Eye Disease Antibodies sanofi-aventis Bayer HealthCare sanofi-aventis Upfront/milestone payments $130MM $95MM $85MM Development costs paid by partner * 100% ~50% ~100%** Profit split – Regeneron share US 50% 100% 50% Japan ~35% royalty 50% 35-45% ROW 50% 50% 35-45% Milestones remaining Regulatory $400MM $90MM – Sales – $135MM $250MM