Sanofi Expands Oncology Pipeline - Analyst Blog

French pharma giant Sanofi-Aventis (SNY) recently entered into two agreements in order to bolster its oncology franchise. While the first agreement was signed with Avila Therapeutics, the second was signed with Merck KGaA (MKGAF). 

Avila Deal

Under the first agreement, which is initially for a three year period, Sanofi and Avila will work on the discovery of targeted covalent drugs for the treatment of cancers. The companies will focus on designing targeted covalent drugs which will target six signaling proteins that exist in tumor cells.

Sanofi will have a worldwide exclusive license for the development and commercialization of the compounds developed under this deal. While Avila has the option of retaining rights to one of the six programs covered under the program, Sanofi has the right of first negotiation for the program if Avila decides to seek a partner for the same.

Per the terms of the deal, Avila will receive up to $40 million in the form of upfront and research support payments. Avila could also receive an additional $154 million on the achievement of pre-clinical, clinical and regulatory milestones for each program provided the product gains approval in the US, Europe and Japan. Moreover, Avila could receive tiered royalties and sales-based milestone payments.

Merck KGaA Deal

The second agreement, which has been signed with Merck KGaA, relates to the development of combination therapies for cancer.

Under the agreement, Sanofi and Merck KGaA will combine the latter's MEK inhibitor MSC1936369B with Sanofi's PI3K/mTOR inhibitor SAR245409 and/or class I PI3K inhibitor SAR245408.

Per the terms of the worldwide research and development agreement, phase I dose escalation studies will be conducted by each company for their candidates. While Sanofi will evaluate the safety and initial clinical activity of MSC1936369B plus SAR245408, Merck KGaA will evaluate the safety and initial clinical activity of the MSC1936369B- SAR245409 combination.

Both deals should help boost Sanofi's oncology pipeline. Sanofi currently has a wide range of novel agents in its oncology pipeline including BSI-201, cabazitaxel, alvocidib, and aflibercept among others. While some of these candidates are being developed by Sanofi itself, others are being developed in collaboration with companies like BiPar Sciences, Regeneron Pharmaceuticals (REGN), Exelixis (EXEL), Merrimack and Micromet (MITI) among others.