Sanofi Ventures, which now has $1.4 billion in total assets, will focus its investment efforts on early players working in immunology, rare diseases, neurology and vaccines.
Sanofi is giving its venture arm $625 million more to throw behind biotechs and digital health companies working in various areas, such as rare diseases and neuroscience.
With Wednesday’s infusion, Sanofi Ventures will now have more than $1.4 billion in total assets under its management, as per a company news release. Sanofi Ventures will use this money to back startups and early-stage players that “align with Sanofi’s long-term growth ambitions,” particularly those innovating in the immunology, rare disease, neurology and vaccine spaces.
In a prepared statement on Wednesday, Sanofi CEO Paul Hudson said the new capital allotment “reflects our strong belief that some of the most important medical breakthroughs begin in early-stage companies.” The pharma last pumped money into its venture arm in January 2023 with a $750 million commitment.
Since its launch in 2012, Sanofi Ventures has released more than $800 million in investments across upwards of 70 companies. Among its portfolio companies is bluebird bio, once a leading player in the gene therapy space that secured some key FDA nods, including Lyfgenia for sickle cell disease in December 2023.
Recently, however, times grew tough for bluebird, pushing the biotech to agree to a go-private deal in February this year with Carlyle and SK Capital Partners. Last week, bluebird re-emerged from the buyout, rebranded as Genetix Biotherapeutics.
Also backed by Sanofi Ventures is rare disease player Ultragenyx, which in July was hit with a rejection for its gene therapy for Sanfilippo syndrome. The rebuff was linked to manufacturing problems, not the drug’s data package, but Ultragenyx has yet to clarify a timeline for resubmission.
Funding across the biopharma industry has grown difficult over the past year, with money flowing into the sector dropping the past four quarters.
Still, like Sanofi, several investors have continued to pour funds into promising companies this year. According to a BioSpace analysis in July, the largest raise of the year so far is for Isomorphic Labs, a spinout of Google’s DeepMind, which in March bagged $600 million. The AI-focused startup has yet to specify what indications it will focus on, only announcing that it will work on “challenging disease areas.”
Also bringing in hefty amounts this year are obesity-focused Verdiva Bio, which raised $410 million in January, and another AI-forward startup Pathos AI, which brought in $365 million in May.
