Sanofi to buy Vigil Neuroscience for $470M to enhance neurological portfolio

Sanofi, a prominent French pharmaceutical company, has announced its decision to acquire Vigil Neuroscience, a clinical-stage biotechnology firm, in a transaction valued at $470 million. This strategic move, disclosed by the companies on Thursday, is aimed at augmenting Sanofi's neurological research and development pipeline, specifically through a promising Alzheimer's treatment.

Under the terms of the agreement, Sanofi will offer Vigil shareholders $8 per share. Additionally, shareholders will have the opportunity to receive an extra $2 per share through a contingent value right (CVR). This CVR is contingent upon the successful progression of a drug Vigil is currently developing for Alzheimer's disease. CVRs are instruments provided to a company's shareholders during mergers, offering them potential additional benefits post-merger, which may be in cash, stock, or both, once specified conditions are fulfilled.

This acquisition is part of a broader strategy by Sanofi to strengthen its presence and capabilities in the neurological domain. Earlier this month, Sanofi unveiled its intention to invest upwards of $20 billion in the United States by 2030. These investments are earmarked for enhancing manufacturing and research facilities, both through direct investment in Sanofi's existing sites and through collaborations with other domestic manufacturers.

The transaction with Vigil Neuroscience is anticipated to be finalized in the third quarter of 2025. Sanofi has assured stakeholders that this acquisition will not impact its financial outlook for 2025. By acquiring Vigil, Sanofi aims to gain control over VG-3927, an oral medication that is being investigated for its potential efficacy in treating Alzheimer's disease. This acquisition aligns with Sanofi's strategic objectives to expand its portfolio in neurological treatments.

In June 2024, Sanofi made a significant equity investment of $40 million in Vigil Neuroscience. This investment included securing exclusive negotiation rights for VG-3927, demonstrating Sanofi's commitment to advancing its research in neurological therapies.

However, Vigil's monoclonal antibody program, VGL101, will not be part of the acquisition deal. Amgen, a U.S.-based drugmaker, will retain ownership of this program, according to Vigil.

Through this acquisition, Sanofi seeks to reinforce its position as a leading innovator in neurological drug development. The focus on Alzheimer's disease treatment is in line with Sanofi's strategic goals to deliver innovative solutions to complex health challenges. As the global population ages, the demand for effective Alzheimer's treatments is on the rise, making this acquisition timely and relevant.

Sanofi's plans to invest significantly in the United States reflect its ambition to bolster its global manufacturing and research capabilities. This move is designed not only to enhance Sanofi's operational capacity but also to foster strategic partnerships that can drive innovation and efficiency in drug development.

The acquisition of Vigil Neuroscience signals a promising advancement in Sanofi's neurological research endeavors. By integrating Vigil's expertise and ongoing projects into its portfolio, Sanofi is positioned to make significant strides in developing treatments for Alzheimer's disease, potentially offering new hope to millions affected by this debilitating condition.