Sanofi dips into red-hot radiopharma space with $110M licensing deal
Sanofi dips into red-hot radiopharma space with $110M licensing deal
Sanofi has become the next Big Pharma company to challenge Novartis in the field of radiopharmaceuticals, inking a $110 million licensing deal to work with RadioMedix and Orano Med on a neuroendocrine tumor candidate.
The three-way deal will see Sanofi pay out €100 million ($110 million) upfront, with €220 million ($242.5 million) in sales milestones, plus royalties, according to a Thursday press release. RadioMedix is a U.S.-based biotech developing radiopharmaceuticals for PET imaging and targeted alpha therapy for unmet needs in cancer. Orano Med is a French company developing radioligand therapies.
The focus of the deal is AlphaMedix, a targeted radioligand therapy that uses lead-212Pb to target cancer. Truist Securities noted that pharmas have been zeroing in on Lead as the next big thing in radioligand therapy. The potential advantages include a short half-life and clearance, delivery of potent alpha emission and more abundant source material, according to Truist analysts.
With that said, Truist warned that investors are concerned about a lack of clarity around distribution logistics for the one-time delivery of the therapy and potential safety concerns.
Under the deal, Sanofi will be responsible for commercialization while Orano Med will conduct manufacturing. AlphaMedix is currently in a Phase II trial for gastroenteropancreatic neuroendocrine tumors (GEP-NETs), according to RadioMedix’s pipeline.
Reuters
