Sanofi has announced that it will be acquiring Vigil Neuroscience and its investigational Alzheimer’s disease (AD) drug for approximately $470m.
The deal will give Sanofi access to VG-3927, a once-daily oral small molecule TREM2 agonist currently in early-stage clinical development for the neurodegenerative disease.
AD is the most common form of dementia, affecting approximately seven million people in the US. It progressively destroys memory and thinking skills and, eventually, the ability to carry out simple tasks.
Strong genetic and functional data have established a causal link between TREM2 and AD, according to Vigil, and activating TREM2 is expected to enhance the neuroprotective function of microglia in AD.
Vigil has already shared positive phase 1 results for VG-3927, with the candidate demonstrating a favourable safety and tolerability profile, as well as an ability to effectively engage TREM2.
A phase 2 trial of the drug in AD is expected to launch in the third quarter of this year.
“TREM2 represents a compelling target at the intersection of immune dysregulation and neurodegeneration, particularly in people living with Alzheimer’s because they face devastating cognitive decline with limited treatment options,” said Houman Ashrafian, head of research and development at Sanofi.
“Vigil’s expertise is complementary to our capabilities in neurology and reinforces our dedication to developing innovative medicines to improve people’s lives,” Houman added. “Vigil’s team are a welcome addition, and we look forward to working with them and the patient community.”
Under the terms of the agreement, which comes just under a year after Sanofi made a $40m strategic investment in Vigil, Sanofi will acquire all outstanding common shares of Vigil for $8 per share in cash at closing. Vigil’s shareholders will also be in line for a contingent value right of $2 per share, conditioned upon the first commercial sale of VG-3927.
Ivana Magovčević-Liebisch, Vigil’s president and chief executive officer, added: “We look forward to joining forces with Sanofi’s team to leverage Sanofi’s resources, broad platform and far-reaching network to fully unlock and accelerate the development of VG-3927 for the potential treatment of AD – a devastating disease with significant unmet need.”
Vigil’s second molecule programme, VGL101, will not be acquired by Sanofi, the companies outlined.