Sanofi’s oncology pruning will lead to the evaporation of an estimated $3 billion in potential biobucks for partner IGM Biosciences.
The French pharma giant has amended its $6.15 billion biobuck pact with the California biotech, removing the three targets they had planned in oncology, IGM said Wednesday morning. A Sanofi spokesperson declined to comment on IGM’s press release.
Sanofi doled out $150 million upfront in March 2022 for the work, which aims to develop IgM antibodies that bind to 10 sites, “sort of like Velcro.” While biobucks are substantial in scope, many biotechs never receive the full milestone package promised in R&D pacts because of clinical failures, reneged partnerships or other factors.
The refined tie-up will now focus only on three targets in immunology and inflammation. Colloquially called I&I, the buzzing biopharma R&D area is one that Sanofi has said it plans to deepen its presence in over the coming years as the drugmaker tacks on more indications for Dupixent and brings forward other medicines.
Sanofi has narrowed its oncology ambitions in recent months, including plans to divest its $1 billion bet on Amunix and shutter an NK cell therapy biotech that it acquired in 2020.
IGM said it will retain the global rights to the technology related to the oncology targets per the collaboration.
Fred Schwarzer“We are very pleased with our collaboration with Sanofi and with the preclinical data that we have generated in both the immunology/inflammation and the oncology portions of the collaboration,” IGM CEO Fred Schwarzer said in a press release. “As we assess next steps with respect to these oncology targets, our top internal priorities remain our clinical-stage oncology and autoimmune programs.”
IGM leads R&D work under the pact, and assumes costs through Phase 1 completion. Sanofi then takes over development.
IGM’s pipeline also includes a Phase 1 asset in colorectal cancer, a Phase 1 T cell engager in autoimmune conditions and another preclinical T cell engager for autoimmune disease. The company had also been exploring a blood cancer program, but axed that in December and laid off 22% of its workforce.