Sanofi signs $1.8B deal for bispecific antibodies targeting autoimmune diseases

Sanofi is making significant strides to expand its autoimmune and immunology portfolio with substantial investments in new technologies and collaborations. Recently, the French pharmaceutical giant entered into a significant agreement with Earendil Labs, a relatively obscure U.S. biotech company known for its use of artificial intelligence in drug development. This strategic move could involve a total investment of up to $1.8 billion, highlighting Sanofi's commitment to advancing its research capabilities in this field.

The initial phase of the agreement includes an upfront payment of $125 million, with an additional $50 million in the near term. These investments secure Sanofi the global rights to two bispecific antibodies developed by Earendil Labs. The first of these, known as HXN-1002, is designed to target α4β7 and TL1A, focusing on treating ulcerative colitis and Crohn's disease. The second, HXN-1003, aims at TL1A and IL23, targeting colitis and skin inflammation. Should these drugs successfully navigate the clinical trial process and reach the market, Sanofi is prepared to make further milestone payments totaling $1.72 billion, which encompass the near-term fee already mentioned, alongside tiered royalties.

Earendil Labs, while not widely publicized, promotes itself as a leader in AI-driven development of next-generation biologic therapeutics. Their approach is closely linked with Helixon Therapeutics, another company in the biotechnology sector that employs machine learning for protein drug design. Earendil Labs utilizes an advanced platform that incorporates predictive protein modeling and high-throughput biology, aiming to revolutionize the discovery and development of bispecific antibodies. This collaboration with Sanofi reflects Earendil's capacity to generate innovative product candidates that could potentially offer groundbreaking treatment solutions for patients.

This latest deal is part of a broader strategy by Sanofi to enhance its autoimmune and immunology offerings. Earlier this month, Sanofi revisited its partnership with Nurix, inking a $480 million agreement focused on a degrader of a previously untreatable transcription factor, enhancing their autoimmune capabilities. Additionally, in March, the company signed a $1.6 billion deal with Dren Bio to develop a CD20-directed antibody intended for treating B-cell non-Hodgkin lymphoma.

Sanofi has been undergoing significant transformations within its pipeline, driven by the ambition to establish itself as a leader in immunoscience. This intent was outlined in an internal communication acquired by Fierce Biotech last year, which described Sanofi's objective to become a powerhouse in this domain. The company co-markets Dupixent, an anti-inflammatory drug, with Regeneron, further emphasizing its commitment to this therapeutic area.

During Sanofi’s earnings call in January 2025, Houman Ashrafian, Ph.D., head of R&D, reinforced the company’s strategic focus on immunology. Ashrafian highlighted Sanofi's efforts to develop a diverse array of molecules that could be combined to create comprehensive treatment regimens in the autoimmune and immunology space. This approach underscores Sanofi's dedication to pioneering innovative solutions and transforming patient care through strategic collaborations and the integration of cutting-edge technology.