Sanofi Inks €545M Deal with Formation Bio for JAK/SYK Inhibitor, Expanding AI-Driven Drug Development

Sanofi has entered into a licensing agreement with Formation Bio for gusacitinib, an oral JAK/SYK dual inhibitor, in a deal worth up to €545 million ($632 million). This move marks Sanofi's latest investment in AI-focused drug development and strengthens its position in the rapidly evolving pharmaceutical landscape.

Gusacitinib: A New Direction for Sanofi

The French pharmaceutical giant has secured the rights to gusacitinib, a small-molecule drug that Formation Bio has been developing for chronic hand eczema. However, Sanofi plans to explore the drug's potential in a new, undisclosed indication through a Phase I study.

Formation Bio, which acquired gusacitinib from Asana BioSciences in November 2022, has already advanced the drug to Phase III trials for chronic hand eczema. The deal structure includes upfront and milestone payments, with Formation's subsidiary Libertas Bio eligible for sales royalties in the low-to-mid-teen range.

Sanofi's Growing AI Ambitions

This latest agreement is part of Sanofi's broader strategy to leverage artificial intelligence in drug development. The company has been actively investing in AI capabilities and partnerships:

• In October 2022, Sanofi signed a three-year contract with Formation Bio (then known as TrialSpark) to advance novel therapies using tech-enabled drug development capabilities.
• May 2024 saw Sanofi, Formation Bio, and OpenAI collaborate on developing AI-powered software for drug discovery and development.
• Sanofi opened an AI Center of Excellence in Toronto in 2022 to scale innovative solutions.
• A research collaboration with the BioMed X Institute in Germany was established to develop a computational platform for predicting drug candidate efficacy.
• In April 2025, Sanofi committed over $1.8 billion in a partnership with Earendil Labs, focusing on AI-driven development of bispecific antibodies for immunology indications.

Formation Bio: An AI-Native Approach to Drug Development

Formation Bio, which secured $372 million in a Series D funding round in June 2024, has positioned itself as an "AI-native" drug development company. Their business model involves partnering with other drug developers to improve workflow automation, including generating tailored patient recruitment content and AI-generated adverse event reports.

The company's CEO, Benjamine Liu, emphasized their strategy: "We acquire high-potential assets, move quickly to unlock value, and partner at key inflection points. We're proud to have Sanofi as a world-class partner working together to accelerate innovation in medicine."

As the pharmaceutical industry continues to embrace AI-driven approaches, collaborations like the one between Sanofi and Formation Bio are likely to become increasingly common, potentially revolutionizing the drug discovery and development process.