Sanofi Expands Immunology Pipeline with $125 Million Deal for Earendil's Bispecific Antibodies

French pharmaceutical giant Sanofi has inked a licensing agreement with startup Earendil Labs, signaling a significant expansion of its immunology portfolio. The deal, announced on Thursday, centers around two promising bispecific antibody candidates targeting autoimmune and inflammatory bowel diseases.

Deal Structure and Financial Terms

Sanofi will pay an upfront fee of $125 million to Earendil Labs for the rights to HXN-1002 and HNX-1003, two novel bispecific antibodies. The agreement includes potential milestone payments that could reach up to $1.72 billion, with a near-term payment of $50 million. Additionally, Earendil stands to receive royalties on any future sales of the licensed products.

Therapeutic Targets and Indications

HXN-1002, the lead candidate, is being developed for ulcerative colitis and Crohn's disease. It uniquely targets both α4β7 and TL1A, two proteins involved in inflammation and immune cell activation. The second candidate, HNX-1003, which has shown promise in preclinical models of colitis and skin inflammation, targets TL1A and IL23.

These targets, particularly TL1A and IL23, have garnered significant attention in the pharmaceutical industry. IL23 inhibitors such as Tremfya, Skyrizi, and Ilumya are already approved for various indications. TL1A has become a focus for several major players, including Merck & Co., Roche, AbbVie, and a collaboration between Sanofi and Teva Pharmaceuticals.

Earendil Labs and AI-Driven Drug Discovery

Earendil Labs, a U.S.-based startup affiliated with China's Helixon Therapeutics, leverages artificial intelligence to accelerate drug discovery and development processes. The company specializes in protein-based biologics, aiming to produce first-in-class or best-in-class therapeutics.

While details about Earendil's prior research on HXN-1002 and HXN-1003 are limited, the deal highlights the growing interest in AI-driven approaches to drug development. It also underscores the increasing collaboration between U.S. companies and China's expanding biotechnology sector.