Sanofi Expands mRNA Vaccine Collaboration with Translate Bio in $2.3 Billion Deal for Infectious Disease Candidates Including COVID-19

Compiled by Fan Dongdong

On June 23, Sanofi Vaccines announced that its business unit, Sanofi Pasteur, and Translate Bio are expanding their partnership established in 2018 to better develop mRNA vaccines for infectious diseases, including COVID-19 vaccines.

Under the new transaction terms, Sanofi will pay Translate Bio $425 million in cash at a price of $25.59 per share, comprising $300 million in cash and a $125 million private investment in common stock. This price represents a 50% premium over the average trading price of Translate Bio’s shares during the 20 days prior to signing. In addition, Translate Bio is eligible for potential milestone and other payments totaling up to $1.9 billion, which includes the $450 million stipulated in the 2018 agreement. Of the potential milestone payments, approximately $360 million is expected to be achieved in the coming years, including milestones related to COVID-19 vaccine development. Sanofi Pasteur will obtain exclusive global commercialization rights for infectious disease vaccines, and Translate Bio will also receive tiered royalties based on global sales volumes of the developed vaccines.

In addition to securing vaccine rights, the expanded partnership will also grant Sanofi an approximately 7.2% equity stake in Translate Bio.

Image source: biospace.com

Translate Bio is a clinical-stage mRNA therapeutics company dedicated to developing novel, potentially transformative medicines to treat diseases caused by protein or gene dysfunction. During the collaboration, Translate Bio will leverage its mRNA platform to design, develop, and manufacture candidate vaccines, while Sanofi Pasteur will provide advice and assistance regarding the clinical application, regulatory oversight, and commercialization of these candidates. In addition to multiple COVID-19 vaccine candidates, the two companies are also investigating an mRNA candidate vaccine for influenza, with clinical trials scheduled to commence in mid-2021. Another development program for an mRNA vaccine targeting bacterial pathogens is also underway.

In March this year, Sanofi and Translate Bio announced a collaboration to develop an mRNA vaccine for COVID-19. Sanofi expects its mRNA candidate vaccine for COVID-19 to enter clinical trials by the end of this year, and if all goes well, it is expected to receive regulatory approval in the second half of 2021.

In addition, Sanofi and GlaxoSmithKline are collaborating on the development of adjuvants for COVID-19 vaccines. The two companies will leverage recombinant DNA technology to provide the S protein COVID-19 antigen and adjuvant technology. Vaccine adjuvants are substances that can elicit a stronger immune response in patients, typically allowing for lower doses of the vaccine to be administered.

Reference: Sanofi Goes Big on $2 Billion-Plus Vaccine Partnership with Translate Bio