) entered into an agreement with a biopharmaceutical company,
Ardelyx Inc. to license the latter's novel phosphate transport
NaP2b inhibitor program. The program includes a number of
candidates in early stages of development for the treatment of
hyperphosphatemia in patients suffering from end stage renal
disease or chronic kidney disease.
ALNYLAM PHARMA (ALNY): Free Stock Analysis
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SANOFI-AVENTIS (SNY): Free Stock Analysis
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As per the terms, Sanofi will undertake the sole responsibility
of developing the candidates further while Ardelyx will retain an
option to co-promote the drugs, covered under the agreement, in
Sanofi will make an undisclosed upfront payment to Ardelyx.
Additionally, Sanofi will be obligated to make development and
regulatory milestone payments of up to $198 million depending
upon the achievement of certain targets. Ardelyx will also
receive royalties on net product sales.
We are pleased with Sanofi's efforts to boost its pipeline.
Although Sanofi has some promising pipeline candidates (U300,
alirocumab and sarilumab), we are disappointed with the string of
pipeline setbacks at the company in the recent past. The Complete
Response Letter (CRL) for its multiple sclerosis drug, Lemtrada,
was a huge disappointment for Sanofi.
We remind investors that Sanofi has been quite active on the
deal-making front, particularly with biopharmaceutical companies.
Earlier this year, Sanofi expanded its existing agreement with
Alnylam Pharmaceuticals, Inc.
) for the development of treatments for rare genetic diseases.
Additionally, Sanofi announced its plan to acquire a 12% stake in
Alnylam through a $700 million investment.
Meanwhile, Sanofi has been showing a lot of interest in
Regeneron Pharmaceuticals, Inc.
). Sanofi intends to increase its stake in the latter.
Sanofi carries a Zacks Rank #5 (Strong Sell). Some better-ranked
). Forest Labs carries a Zacks Rank #1 (Strong Buy).