Sanofi Acquires Vigil Neuroscience for $470M, Reigniting Interest in TREM2 for Alzheimer's Treatment

French pharmaceutical giant Sanofi has announced its acquisition of Vigil Neuroscience for $470 million upfront, with the potential for the deal to reach $600 million including contingent value rights. This strategic move reinvigorates interest in the TREM2 target for Alzheimer's disease treatment, following recent setbacks in the field.

Deal Details and Strategic Implications

Sanofi will pay $8 per share for Vigil, representing a 250% premium on the biotech's closing price. Shareholders will also receive a $2 per share contingent value right upon the first sale of Vigil's TREM2 agonist VG-3927. The acquisition builds upon a partnership initiated last year when Sanofi invested $40 million in Vigil through a private placement.

The deal allows Sanofi to tap into Vigil's resources and expertise in neurodegenerative diseases, particularly Alzheimer's. Houman Ashrafian, head of R&D at Sanofi, emphasized the compelling nature of TREM2 as a target at the intersection of immune dysregulation and neurodegeneration.

TREM2: A Renewed Focus Despite Recent Setbacks

The acquisition comes in the wake of high-profile failures in the TREM2 space, most notably the unsuccessful Phase II trial of AbbVie and Alector's AL002 in November 2024. Despite these setbacks, Sanofi's interest in Vigil's small molecule TREM2 agonist VG-3927 suggests a continued belief in the potential of this target.

VG-3927 has shown promising early results, including high brain penetration, a tolerable safety profile, and a 50% reduction in sTREM2, a biomarker associated with early symptomatic phases of Alzheimer's. The drug's small molecule nature may offer advantages over antibody-based approaches, potentially avoiding issues such as amyloid-related imaging abnormalities (ARIA) that have plagued other Alzheimer's treatments.

Competitive Landscape and Future Prospects

Sanofi's move positions it alongside Novartis in the race to develop TREM2-targeting therapies for Alzheimer's. With Novartis' antibody VHB937 set to enter Phase II trials later this year, the competition in this space is intensifying.

The acquisition of Vigil allows Sanofi to build on recent successes in the Alzheimer's field, following the full approval of Leqembi by Biogen and Eisai in 2023 and Eli Lilly's Kisunla in 2024. As the Phase II trial for VG-3927 is slated to begin in the third quarter of this year, the pharmaceutical industry will be watching closely to see if Sanofi's bet on TREM2 pays off in the ongoing battle against Alzheimer's disease.