Sanofi SA (NASDAQ:SNY) and IGM Biosciences Inc (NASDAQ:IGMS) have signed an exclusive worldwide collaboration agreement for IgM antibodies agonists against three oncology targets and three immunology/inflammation targets.

• IGM will receive a $150 million upfront payment. Sanofi has also expressed an interest in purchasing up to $100 million of IGM non-voting common stock in public financing.
• For each oncology target collaboration program, IGM will lead R&D activities and assume related costs through approval of the first biologics license application for up to $940 million in milestones payments per oncology target. 
• After receiving the first marketing approval, Sanofi will lead all subsequent development and commercialization activities for that oncology target. 
• For each oncology target, the companies will share profits equally in certain major markets, and IGM will be eligible to receive tiered royalties on net sales in the rest of the world.
• For each immunology/inflammation target program, IGM will lead R&D activities and assume related costs through Phase 1 trial for up to two constructs directed to each immunology/inflammation target.
• Sanofi will be responsible for all future development and related costs for up to $1,065 million in milestone payments per immunology/inflammation target.
• After completing the Phase 1 trial for each immunology/inflammation target, Sanofi will be responsible for subsequent development activities, commercialization efforts, and related costs. 
• Price Action: IGMS shares are up 35.4% at $20.30, and SNY stock is down 0.56% at $51.54 during the premarket session on the last check Tuesday.