Sanofi is investing in the development of novel central nervous system disease treatments through a USD845-million agreement between its subsidiary Genzyme and Voyager (US). Separately, the company's R&D oncology operations will be move under overall R&D operations, cutting 100 jobs in the US.
IHS Life Sciences perspective | |
Significance | Genzyme (subsidiary of Sanofi, France) has partnered with Voyager (US) in a USD845-million deal aimed at acquiring rights to treatments for central nervous system (CNS) diseases outside the United States. Furthermore, Sanofi announced the restructuring of its R&D oncology operations in the US. |
Implications | These operations will move under overall R&D and the company will cut 100 jobs in the US. |
Outlook | Sanofi has undergone significant changes and reorganisations in the last few years, including lay-offs in France and the decision to remove its CEO. The decision to restructure its oncology division is a results of significant setbacks faced in recent years and the negative performance of the division due to increasing generic competition on its mature portfolio. |
Genzyme and Voyager sign USD845-million CNS therapies deal
Genzyme (subsidiary of Sanofi, France) and US-based Voyager Therapeutics announced yesterday (11 February) the signature of a collaboration deal for the development and commercialisation of innovative gene treatments targeting central nervous system (CNS) diseases. Through the agreement, Genzyme secures access to rights to Voyager's investigational drugs for Parkinson's disease (VY-AADC01) and Friedreich's ataxia (VY-FXN01) outside the United States. Furthermore, the two companies will split profits for the Huntington's disease programme (VY-HTT01). The amyotrophic lateral sclerosis (ALS) programme (VY-SOD101) remains outside the scope of the deal as Voyager will retain global rights to this programme. Under the terms of the agreement, Genzyme will pay upfront USD100 million to Voyager, of which USD65 million is in cash, USD30 million is for an equity stake in Voyager, and additional in-kind contributions. Furthermore, on the basis of future development milestones, Voyager is entitled to obtain additional payment to a maximum of USD745 million, as well as tiered royalties on product sales.
Sanofi reorganises its US R&D operations, cuts 100 jobs
Separately, Sanofi has announced its decision to restructure its oncology research and development (R&D) operations in North America. The company will cuts 100 jobs, mostly in Massachusetts, where it employs more than 100,000 people. The move is part of the company's decision to merge its oncology franchise with its overall R&D division, further to the disappointing performance of its cancer franchise in the last few years. In particular, the lay-offs include 30 jobs in the cancer research unit and the remainder in Genzyme's R&D Center, as the subsidiary will focus exclusively on the development of innovative treatments for rare and neuro-immunology diseases. Furthermore, according to Bloomberg reports, the head of Sanofi's oncology division Tal Zaks will leave the company and Vicky Richon will lead Sanofi's oncology research. Oncology activities will be based in Massachusetts and Vitry, France.
Outlook and implications
Sanofi has undergone a number of reorganisations and internal changes in recent times. In particular, the company also announced a major restructuring in France in 2013, when the company said it aimed to cut 187 jobs in its R&D operations there by 2015 (see France: 11 October 2013: Sanofi to cut 187 jobs in France). Furthermore, Sanofi also announced its decision to remove its chief executive officer (CEO) Christopher A Viehbacher in October 2014 (see France: 29 October 2014: Sanofi's board votes to remove CEO). Sanofi's cancer unit was created in 2009 when former CEO Christopher A Viehbacher took on its role as head of the company. However, since its creation, the division has faced significant R&D setbacks which have significantly slowed down the performance of the division. In particular, an investigational drug disappointed in Phase III studies on patients with metastatic triple-negative breast cancer in 2011 (see France: 1 February 2011: BSI-201 Fails to Meet Co-Primary Endpoints of OS, PFS in Patients with mTNBC). Furthermore, following its lunch in the US in 2010, the performance of Jevtana (cabazitaxel) has been below the expectations.
Looking at recent financial results published by Sanofi, the oncology division lags behind the company's growth platforms (including the diabetes and Genzyme divisions) with disappointing results in the full-year 2014 when the company registered a decline by 2.5% year on year (y/y) to EUR1.4 billion (USD1.5 billion). The negative results are also driven by significant competitive pressure on its mature oncology portfolio (see France: 5 February 2015: Sanofi posts 2.5% y/y sales increase in 2014 driven by emerging markets, diabetes, and Genzyme segments).
On the positive side, Sanofi's mid- and late-stage portfolio includes a number of investigational cancer treatments, including an anti-CD38 monoclonal antibody currently in Phase II development for multiple myeloma. Furthermore, the company may decide to expand its oncology portfolio through acquisitions, according to Bloomberg reports.
Finally, as the company has announced that one of the main focuses of Genzyme will be neuro-immunology diseases, the announcement of the partnership with Voyager Therapeutics will enable it to invest in Genzyme's expertise in adeno-associated virus (AAV) gene therapy focusing on a range of CNS disorders, including Parkinson's disease, Friedreich's ataxia, and Huntington's disease.