Sanofi invests US$27M in Ventyx to advance neuroinflammatory disease research

FRANCE— Sanofi, a French pharmaceutical corporation, has announced a US$27 million strategic investment in Ventyx Biosciences, a biopharmaceutical business in clinical development.

As part of the transaction, Sanofi will pay US$3.82 per share of common stock for 70,601 shares of Ventyx’s Series A non-voting convertible preferred stock.

Each preferred stock share is “initially convertible” into 100 shares of common stock, allowing Sanofi to retain a strong equity holding in Ventyx.

This purchase of shares, together with the company’s present cash, cash equivalents, and marketable securities, will provide enough capital to sustain operations until at least late 2026.

The announcement improved Ventyx’s stock price by 14.8% when the market started on September 23, yet the stock remains 92.2% lower than it was at the same time last year.

This collaboration grants Sanofi exclusive rights to the initial discussions for the CNS-penetrant VTX3232 candidate program, which has the potential to address neuroinflammatory diseases.

In a press statement dated September 6, Ventyx announced the start of dosing in the Phase IIa Parkinson’s disease research, an open-label study that will enrol ten patients for a 28-day treatment period.

In addition to evaluating the primary objective (adverse and serious adverse events), the trial will look at pharmacokinetics and biomarkers in plasma and cerebrospinal fluid (CSF).

Raju Mohan, Ventyx’s Chief Executive Officer, expressed optimism about the collaboration with Sanofi, highlighting that VTX3232 may offer a disease-modifying approach for treating a range of neuroinflammatory diseases.

He further emphasized the potential for strengthening the relationship between the two companies as the VTX3232 clinical trials progress.

Data from ongoing studies, including the Phase 2a trial in patients with early-stage Parkinson’s disease and the Phase 2 trial in subjects with obesity and cardiometabolic risk factors, are anticipated in 2025.

VTX3232 is an orally administered inhibitor of NACHT, LRR, and PYD domains-containing protein 3 (NLRP3), a key protein involved in immunity and inflammation.

This CNS-penetrant small molecule is being developed for multiple neuroinflammatory and neurodegenerative conditions, such as Parkinson’s disease, Alzheimer’s disease, obesity, and multiple sclerosis.

After presenting positive results from a Phase I study involving healthy volunteers, Ventyx is moving forward with Phase IIa trials for both Parkinson’s disease and obesity, expected to begin in the second half of 2024.

While this US$27 million investment in Ventyx forms part of Sanofi’s broader portfolio, the pharmaceutical giant has also ramped up its manufacturing capabilities.

Sanofi also spent US$1.07 billion in May to expand biomanufacturing capacity in France, followed by a US$1.4 billion investment in August to increase insulin production at a plant in Frankfurt, Germany, which is projected to be operational by 2029.

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