Sanofi - Oncodesign Join Forces - Analyst Blog

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Sanofi ( SNY ) recently entered into a strategic research collaboration agreement with Oncodesign. Per the terms of the deal, Oncodesign's Nanocyclix technology will be applied exclusively in several of Sanofi's kinase target programs for a period of four years.

The deal aims to expedite selection of multiple undisclosed kinase targets in kinase families. The multiple undisclosed kinase targets are historically difficult to address.

Sanofi is liable to pay up to €130 million as technology access fee and on the achievement of discovery, development, regulatory and commercial milestones along with low single-digit royalties on net sales.

Meanwhile, Sanofi received a major boost recently with the company gaining US approval for Aubagio (teriflunomide), its oral candidate for relapsing forms of multiple sclerosis (RMS). The US Food and Drug Administration (FDA) approved Aubagio as a once-daily treatment for patients with RMS. The approval was based on encouraging data from a pivotal phase III study (TEMSO) in patients with RMS. Aubagio is currently under regulatory review in the EU.

Competition in the oral multiple sclerosis market will be intense and Aubagio needs to demonstrate superior efficacy and tolerability to gain share. Novartis ' ( NVS ) Gilenya already has a lead in the oral MS market with the product being approved in September 2010. Another major competitor could be Biogen Idec 's (BIIB) BG-12, which is currently under regulatory review in the US and the EU.

Our Recommendation

We currently have a Neutral recommendation on Sanofi. The stock carries a Zacks #3 Rank (Hold rating) in the short run.

NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: BIIB , NVS , SNY

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