The star of the agreement, ADEL-Y01, targets a specific type of tau protein, helping to prevent toxic accumulation in the brain while also preserving the function of healthy tau.
Sanofi doubled down on deals Monday, putting $1.04 billion on the line to partner with South Korea’s ADEL for a next-generation antibody against Alzheimer’s disease, continuing the pharma’s investment spree in neuro.
The ADEL agreement is back-heavy: Sanofi will front $80 million to enter the partnership, while the rest of the money will be relegated to contingent payments upon hitting certain development and commercial milestones. ADEL will be entitled to tiered royalties on potential net sales of the asset in question, running up to double-digit percentages.
The star of the deal is ADEL-Y01, a monoclonal antibody that targets only a specific type of tau protein, rather than all tau proteins. This selective action allows the investigational antibody to block the aggregation and propagation of toxic tau clumps, according to ADEL’s Monday news release, which the company claimed is a “key driver of Alzheimer’s pathology.” At the same time, ADEL-Y01 aims to preserve the function of healthy tau.
ADEL-Y01 is currently in a global first-in-human Phase I study. It is unclear how the partners will divide the development responsibilities. In a statement, Erik Wallstroem, global head of Multiple Sclerosis, Neurology and Gene Therapy Development at Sanofi, called ADEL-Y01’s approach a “promising and differentiated mechanism for addressing the underlying causes of Alzheimer’s disease.”
Aside from ADEL-Y01, Sanofi is also gaining access to “related backup compounds,” though the pharma did not specify what these are.
Monday’s ADEL alliance is Sanofi’s most recent big-ticket investment in the Alzheimer’s space. The pharma in May, for instance, acquired Vigil Neuroscience for $470 million upfront, gaining ownership of its investigational TREM2 agonist VG-3927 for neurodegenerative diseases like Alzheimer’s. Sanofi also offered a contingent value right contingent on the first sale of VG-3927. All told, that deal’s value could reach $600 million.
Sanofi has also been a prolific dealmaker beyond neuro this year. Also on Monday, the company inked a potential $1.7 billion agreement with Dren Bio for the latter’s Targeted Myeloid Engager and Phagocytosis Platform, aimed at developing next-generation B cell depletion therapies. And in June, Sanofi swallowed rare disease specialist Blueprint Medicines for $9.5 billion, one of the biggest acquisitions of the year.
