Sanofi invests $27M into Ventyx for obesity research

Sanofi, the French pharmaceutical giant, has largely remained on the sidelines of the obesity drug development surge, opting for a cautious approach while observing potential future therapies. However, on Monday, Sanofi made a strategic move by investing $27 million in Ventyx Biosciences, a small biotech company based in San Diego. This deal grants Sanofi exclusive rights to negotiate for Ventyx’s drug, VTX3232, an NLRP3 inhibitor under investigation for obesity and neuroinflammatory conditions.

Following the announcement, Ventyx’s shares surged by approximately 16% prior to the market opening. VTX3232’s development aligns well with Sanofi's current strategic focus on inflammation, immunology, and central nervous system (CNS) diseases, such as multiple sclerosis. Ventyx anticipates Phase 2a data for VTX3232 in early Parkinson’s disease and Phase 2 data for obesity and cardiometabolic risk factors by next year. The drug, being oral and CNS-penetrant, also shows promise for treating Alzheimer’s and other neuroinflammatory conditions.

Sanofi’s announcement clarified that the deal includes specific rights regarding the VTX3232 program. However, the company did not immediately specify which indications it is particularly interested in pursuing. Sanofi’s venture capital arm has previously invested in NodThera, another biotech company investigating NLRP3 inhibitors for obesity, indicating a sustained interest in this mechanism. Concurrently, Novo Nordisk is exploring NLRP3 for various cardiometabolic applications, including MASH.

Sanofi executives have expressed a reluctance to engage in “me-too” obesity drugs, citing the extensive research and development and manufacturing costs required for GLP-1 space drugs. However, they have shown interest in innovative approaches for obesity treatment. Sanofi’s Head of R&D, Houman Ashrafian, emphasized the importance of identifying new genetic markers for obesity treatments during the JP Morgan Healthcare Conference in January.

During Sanofi’s annual general meeting in April, CEO Paul Hudson defended the company’s strategic focus on inflammation and immunology, likening the level of investment to what other companies are allocating to obesity treatments. Hudson suggested that Sanofi’s targeted approach in immunology could yield significant results, drawing attention from shareholders of other major pharmaceutical companies.

Should Sanofi proceed with VTX3232 for obesity, it would mark a notable return to the field after many years. The company had previously developed an obesity drug, Acomplia, in the 2000s, which received approval in Europe. However, Acomplia was later withdrawn due to serious psychiatric side effects. While other companies are exploring next-generation CB1-targeting drugs for obesity, aiming to avoid similar side effects, Novo Nordisk recently faced setbacks in a Phase 2 study of their CB1-targeting drug.

For Ventyx, the investment from Sanofi comes on the heels of a setback two months ago, when their TYK2 inhibitor, VTX958, failed in a Phase 2 trial for Crohn’s disease, leading to the discontinuation of that particular asset. Despite this, the partnership with Sanofi presents a promising opportunity for the continued development and potential success of VTX3232 in treating both obesity and neuroinflammatory conditions.