Sanofi shrinks IGM antibody partnership amid pipeline reprioritization

Sanofi’s global collaboration with IGM Biosciences has shrunk by half. The companies will now focus only on developing three IgM agonist antibodies for immunology and inflammation and shed three related oncology targets.

The move follows news of two other oncology pullbacks by the pharma earlier this month.

The exclusive agreement, initially inked in 2022, saw Sanofi pay $150 million upfront and offer potential milestones exceeding $6 billion. In return, the French drugmaker received a stake in six IGM antibodies, which have ten binding units compared to the industry standard of two. IGM believes the additional units will allow its antibodies to bind to more targets with more power.

Now, Sanofi has slimmed down the agreement, handing back global rights to IGM’s oncology targets nominated under the original agreement, according to an April 17 release.

IGM will continue to lead R&D activities through the completion of a phase 1 trial for up to two constructs directed to each target, after which Sanofi will be responsible for all development and commercialization activities. IGM will be eligible to receive around $1 billion in development, regulatory and commercial milestones per target, as well as tiered royalties.

The deal revision is part of an apparent larger pull back by Sanofi from immuno-oncology investments.    

Earlier this month, the Big Pharma said it would be divesting a San Francisco site from Amunix Pharmaceuticals, an immuno-oncology biotech Sanofi snapped up in 2021 for $1 billion. At the time, Amunix touted a wholly preclinical pipeline of anti-cancer T-cell engagers.  

“Sanofi is divesting the Amunix San Francisco site and assets and has actively scouted for buyers to take over research, CMC and clinical activities,” a spokesperson told Fierce Biotech in an emailed statement April 10. “We have made progress and are in active discussions with potential partners. We expect to make final determinations in the next few months.”

The pharma also shared plans to close legacy business Kiadis, another immuno-oncology company, at the beginning of April. The biotech, also acquired back in 2021, is focused on developing next-gen, ‘off-the-shelf,’ NK cell therapies.

“Despite exhaustive efforts to explore potential divestment options, including sale, we are proposing to close the legacy Kiadis business,” the Sanofi spokesperson said in the same April 10 emailed statement. “This proposal was made after careful consideration of various factors, including market conditions and strategic priorities. We are in discussions with our social partners in the Netherlands regarding the impact this may have on employees, partners and the community.”

In early April, Sanofi set out plans for a “simplified R&D structure” and “full pipeline reprioritization project,” according to internal documents obtained by Fierce Biotech. An undisclosed number of staffers are slated to lose their jobs in the pivot.