Sanofi Expands Immunology Pipeline with $1.8B Bispecific Antibody Deal

French pharmaceutical giant Sanofi has inked a significant research agreement with U.S.-based artificial intelligence biotech Earendil Labs, further solidifying its position in the autoimmune and immunology space. The deal, which could be worth up to $1.8 billion, centers on two promising bispecific antibodies targeting inflammatory bowel diseases and skin conditions.

Deal Structure and Financial Terms

Sanofi will pay $125 million upfront to Earendil Labs, with an additional $50 million due in the near term. The agreement includes potential milestone payments totaling $1.72 billion, contingent on successful development and commercialization of the two bispecific antibodies. Tiered royalties are also part of the arrangement, though specific percentages were not disclosed.

Target Compounds and Indications

The collaboration focuses on two key bispecific antibodies:

1. HXN-1002: This compound targets α4β7 and TL1A, aiming to treat ulcerative colitis and Crohn's disease.
2. HXN-1003: Targeting TL1A and IL23, this antibody is being developed for colitis and skin inflammation.

Both compounds leverage Earendil Labs' AI-driven research platform, which the company claims revolutionizes the discovery and development of bispecific antibodies through predictive protein modeling and high-throughput biology.

Sanofi's Immunology Strategy

This latest deal underscores Sanofi's aggressive push to bolster its immunology pipeline. The company has been on a spending spree in recent weeks, including a $480 million autoimmune deal with Nurix and a $1.6 billion agreement with Dren Bio for a CD20-directed antibody targeting B-cell non-Hodgkin lymphoma.

Sanofi's head of R&D, Houman Ashrafian, Ph.D., reiterated the company's focus on becoming a "premier immunology powerhouse" during their January 2025 earnings call. This strategy builds upon the success of Dupixent, Sanofi's blockbuster anti-inflammatory drug co-marketed with Regeneron.