Recordati buys CAD treatment rights from Sanofi for $825M

Recordati has announced an agreement with Sanofi to acquire the global rights to Enjaymo (sutimlimab), a biologic treatment specifically designed for cold agglutinin disease (CAD). CAD is a rare disorder affecting B-cells, and Enjaymo is uniquely positioned as the only approved targeted treatment for this condition. The drug works by addressing hemolysis, the destruction of red blood cells, in adults suffering from CAD. Enjaymo was granted approval by regulatory bodies in the United States, Europe, and Japan in 2022.

The terms of the agreement between Recordati and Sanofi include an upfront payment of $825 million (€780 million). Additionally, Recordati has committed to up to $250 million (€235 million) in milestone payments that are dependent on meeting specific commercial sales targets. The entire transaction is anticipated to be finalized by the end of 2024, subject to necessary regulatory approvals. Recordati plans to finance the acquisition through a combination of its existing cash reserves and new bank debt facilities.

Financially, Enjaymo has shown promising revenue figures, generating approximately $105 million (€100 million) over the past year. Recordati is optimistic about the drug's future performance, projecting revenues to exceed $158 million (€150 million) by 2025. The company also forecasts that Enjaymo has a peak sales potential ranging between $263 million and $315 million (€250 million and €300 million).

Enjaymo stands out as a first-in-class treatment that specifically inhibits C1s, a component of the classical complement pathway. This inhibition plays a crucial role in preventing the destruction of red blood cells in patients with CAD, offering a significant clinical benefit.