Fierce Biotech and Xconomy reports on Sanofi's latest acquisition of TarGen for $75 M down and with a total deal possibility up to $560 M in milestone payments. Wow! This continues Sanofi's spending spree since Chris Viehbacher took over as CEO. The Company has also inked licensing deals up to $750 M with Regulus for microRNA and a $375 M deal with Metabolex for a diabetes target.
The TarGen deal gives Sanofi access to the JAK2 marker seen in a host of myeloproliferative disorders. This puts them in competition with Incyte, Novartis and AZ versus this target. Targen has a drug (TG101348) that reportedly is more targeted (selective) for JAK2 with no broad immunosuppression side effects. TarGen was able to bring this to clinical trials in less than 18 months with the help of China's Wuxi Pharmatech.
The acquisition strengthens Sanofi's portfolio in oncology and specifically with hematological malignancies to further the company's strategy of providing "breakthrough medicines". TG101348 (catchy name) has the possibility of being best in class.
And while we're talking about spending money, Sanofi also announced that it will be building a new 35,000 sq. ft. manufacturing plant for antidiabetics and cardiovascular drugs in King Abdullah Economic City (KAEC) Saudi Arabia. The plant will supply drugs to the local market which is estimated to be worth $400 M annually. See in-Pharma Technologist.com story.
Sanofi may be spending faster than a drunken sailor but with much greater prudence and following a strategy that looks to deliver a better ROI!
Posted by Bruce Lehr June 30th 2010.