By Connor Hart

Sanofi said it entered an agreement to acquire Vigil Neuroscience for approximately $470 million, a deal that adds a new investigational treatment for Alzheimer's disease to the French pharmaceutical company's pipeline.

The transaction would see Sanofi purchase all of Vigil's outstanding shares for an upfront payment of $8 a share, the companies said Wednesday. Vigil's shareholders would also receive the right to an additional $2 a share in cash, payable following the first commercial sale of the in-development Alzheimer's disease treatment, if achieved within a set period.

Including the possible later payout, the deal's total equity value could reach about $600 million. The sale is expected to close in the third quarter, and it isn't expected to affect Sanofi's outlook for 2025, the company said.

Sanofi said the deal is centered around neurology--one of the company's four strategic disease areas. It added that the acquisition would enhance Sanofi's early-stage pipeline through the inclusion of VG-3927, Vigil's investigational treatment for Alzheimer's disease.

The deal comes after Sanofi made a $40 million strategic investment in Vigil last June. This investment included the exclusive right of first negotiation for an exclusive license, grant, or transfer of rights to research, develop, manufacture and commercialize VG-3927, the company said.

VG-3927 is set to be evaluated in a Phase 2 clinical study in Alzheimer's disease. The treatment is designed to bind to and activate TREM2--or Triggering Receptor Expressed on Myeloid cells 2, a protein found on the surface of immune cells like microglia in the brain--which can facilitate the prevention of neural degeneration, the company said.

A second molecule program, VGL101, or Iluzanebart, isn't included in Sanofi's purchase agreement and will be returned to Amgen, its original licensor, Vigil said. The return of the molecule program and end of exclusive license agreement with Amgen will take place before the Sanofi deal closes, Vigil said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 21, 2025 19:51 ET (23:51 GMT)

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