Sanofi acquires 16% stake in Orano Med for €300M

Sanofi has significantly strengthened its position in the radiopharmaceutical sector by purchasing a 16% stake in Orano Med for €300 million. This move follows Sanofi's recent collaboration with Orano Med and RadioMedix, wherein they invested €100 million upfront to obtain access to an innovative radioligand therapy known as AlphaMedix. This therapy, which targets certain neuroendocrine tumors, is currently in Phase 2 clinical trials. The agreement could potentially bring in an additional €220 million upon reaching sales milestones, along with tiered royalties. Sanofi is responsible for commercializing AlphaMedix, while Orano Med will manage its production.

Paul Hudson, CEO of Sanofi, emphasized the strategic importance of this partnership, highlighting the combination of Sanofi’s biopharma capabilities with Orano's nuclear technology expertise to make significant advancements in cancer treatment. Sanofi reported that data from the AlphaMedix trials are under discussion with the FDA for possible regulatory approval. AlphaMedix utilizes lead-212, a member of the alpha class of radioligand therapies, a field that also includes companies such as Perspective Therapeutics and Artbio.

Sanofi and Orano Med aim to expedite the development of Orano Med’s pipeline of next-generation radioligand therapies. This investment aligns with Sanofi's broader strategic overhaul under Hudson’s leadership, which includes a deeper focus on immunology, efforts to divest its consumer health division, and a reevaluation of its oncology portfolio.

The radiopharmaceutical market has seen considerable growth, attracting significant investments from major pharmaceutical companies. Sanofi, despite being a latecomer, is now joining other big names like Bristol Myers Squibb, AstraZeneca, Eli Lilly, and Novartis, which have already made substantial investments in this space. This surge of interest is reflected in recent funding rounds, such as the $103 million raised by Bayer’s radioisotope supplier PanTera and the $175 million Series B secured by Aktis Oncology.

Sanofi noted Orano Med’s substantial resources, including its proprietary manufacturing processes and stock of raw materials. Orano Med operates an alpha therapy production site near Indianapolis and is constructing another facility in France to serve the European market. The subsidiary of the Orano Group also has a research facility in Plano, Texas.

Besides AlphaMedix, Orano Med's pipeline comprises treatments for prostate cancer and other solid tumors. The company has established partnerships with major players like Roche and Molecular Partners, further enhancing its research and development capabilities.

This investment marks a notable step for Sanofi as it continues to redefine itself in the competitive pharmaceutical landscape, focusing on innovative cancer treatments and leveraging unique technologies to meet unmet medical needs.