(RTTNews) - Sanofi (SNYNF, SNY) and SK bioscience have entered an expanded agreement to develop, license and commercialize next-generation pneumococcal vaccines for both pediatric and adult populations. The expansion builds on the existing collaboration to develop and commercialize a PCV21 pediatric vaccine, for which the phase 3 program commenced last week.

Under the terms of the expanded agreement, the companies will co-fund research and development costs. Sanofi will pay 50 million eurs upfront to SK bioscience, followed by development and commercial milestone payments. Once registered, Sanofi will commercialize the vaccines worldwide except for South Korea, where SK bioscience will have commercial exclusivity. SK bioscience will receive royalty payments on product sales outside South Korea.