Sanofi’s Neuro Pipeline expands to Alzheimer’s disease with $470 million vigil neuroscience acquisition
Sanofi expands its neuroscience drug pipeline with $470 million acquisition(Opens in new window) Vigil Neuroscience is a clinical-stage biotechnology whose drugs can introduce a new treatment for Alzheimer’s disease.
The merger agreement announced Thursday that it called on Sanofi to make $8 cash per share of all outstanding shares of Vigil. If a Watertown, Massachusetts-based biotech drug arrives in the market, vigil shareholders can receive more. Currently, it is on track for Phase 2 testing.
Vigil aims to treat Alzheimer’s with a drug that improves microglia function, an immune cell in the central nervous system that reconnaissances and eliminates things like proteins that cause disease. Microglia dysfunction is associated with certain neurodegenerative diseases, including Alzheimer’s disease.
The Vigil drug VG-3927 is an oral small molecule designed to target Trem2, a receptor found on microglia. By activating the receptor, the drug aims to improve the function of these key immune cells. In the Phase 1 Test(Opens in new window) Of 115 healthy volunteers, Vigil reported that the drug was safe and tolerant. No serious adverse events were reported. The results also show that the drug penetrates the central nervous system and participates in its TREM2 target.
Vigil plans to push VG-3927 into Phase 2 testing for Alzheimer’s in the third quarter of this year. As for Sanofi, drug giant neurodegeneration pipelines include antibodies in early clinical development of Parkinson’s disease, but not for Alzheimer’s.
“TREM2 represents a compelling target for the intersection of immune dysregulation and neurodegenerativeness, especially among people with Alzheimer’s, as they face a cognitive decline in limited treatment options,” said Houman Ashrafian, head of research and development at Sanofi, in a prepared statement. “Vigil’s expertise complements our neurological capabilities and strengthens our dedication to developing innovative drugs to improve people’s lives.”
Sanofi makes a strategic investment of $40 million(Opens in new window) Last June was on a vigil. Through this investment, the pharmaceutical giant also secured the first negotiations for a vigil to target TREM2. Biotech said at the time that it expected the investment to extend the cash runway until 2026. Vigil reveals questions in its first quarter 2025 financial report(Opens in new window) About its ability to continue operations within next year. Vigil reported a cash position of $87.1 million as of the end of March.
Sanofi is taking Vigil’s Trem2 targeted drug after other companies’ efforts to target drugs decline. Denali Therapeutics and Takeda Pharmaceutical will be discontinued in 2023(Opens in new window) Their partner trem2 targeted drug candidate(Opens in new window) Based on the data from Phase 1 “and the rapidly developing therapeutic landscape”. Last fall, Alector stopped testing its TREM2-targeting antibody Al002, abbvie-partner failed to do so(Opens in new window) Meet the goals of the 2-stage test.
Vigil has another program against TREM2, but has antibodies. The drug, Iluzanebart (formerly VGL101), has been tested in adult-onset leukocyte nucleosis, with axonal spherical and colored glial cells (ALSP), a rare and fatal hereditary neurodegenerative disease without FDA-approved therapeutic treatments. VG-3927 and Iluzanebart are both licensed by Amgen. Sanofi did not want the Iluzanebart plan, so when the vigil acquisition ended, the right to the drug would be returned to Amgen.
The merger agreement calls on Sanofi to acquire all of Vigil’s outstanding shares at $8 per cash share. Vigil shareholders can receive an additional $2 per share from specific value associated with the first commercial sale of Alzheimer’s Poison. Expenditures for the right to have value will bring the value of the transaction to approximately $600 million. While the initial cash payment per share was well above Virgil’s $2.31 closing price on Wednesday, it was just $7.95 more than the stock’s 52-week spree. In other contexts, Vigil’s 2022 IPO is priced at $14 per share(Opens in new window).
The acquisition still requires approval of the outstanding shares of most vigil common stocks and other customary closure conditions. Sanofi and Vigil are expected to close their deals in the third quarter of this year.
Photo: Nathan Ryan/Bloomberg, by Getty Images
