Regeneron Pharmaceuticals is to fork out almost $12.5 million to settle a licence agreement dispute with French biotechnology firm Cellectis.

The settlement resolves a dispute between the two companies related to a deal signed in December 2003 which saw the US firm license patents to a process for the “replacement of a copy of a gene in the receiver genome by homologous recombination”. Cellectis’ technology involves the production of human proteins in laboratory mice or cells for therapeutic purposes.

As well as getting the $12.5 million upfront payment, Cellectis said that Regeneron has agreed to take a stake in the company, which is based in Biocitech, the Paris life science technology park. It is purchasing 368,301 shares for nearly 3.2 million euros.

Regeneron also has agreed to pay Cellectis, which was spun off in 2000 by the Institut Pasteur, a low single-digit royalty based on any future sales of products and services that involve its VelocImmune or VelociGene technologies. However, those royalties will not extend to licence agreements Regeneron has in place with AstraZeneca, Astellas Pharma and Sanofi-Aventis.