French Pharma Giant Sanofi Drops Rare Disease Drug Pact As Federal Trade Commission Puts Antitrust Obstacle
Portfolio Pulse from Vandana Singh
Sanofi SA is terminating its licensing agreement with Maze Therapeutics for the Pompe disease drug MZE001 due to an FTC lawsuit aimed at blocking the deal over antitrust concerns. The FTC argues that the $755 million deal would maintain Sanofi's monopoly in the Pompe disease treatment market, as Sanofi is the sole FDA-approved supplier of such treatments. Maze's MZE001, an oral treatment, is seen as a potential competitor to Sanofi's intravenous infusions. Despite the termination, Sanofi's stock is up 1.06% in premarket trading.
December 12, 2023 | 12:14 pm
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POSITIVE IMPACT
Sanofi is terminating its deal with Maze Therapeutics for a Pompe disease drug due to FTC antitrust litigation, which could have delayed the drug's market entry. Despite this, Sanofi's stock is up in premarket trading.
The termination of the deal with Maze removes the immediate legal challenge and uncertainty surrounding the partnership, which could be viewed positively by investors. However, the loss of a potential new product in Sanofi's pipeline and the FTC's scrutiny could be seen as negative in the long term. The premarket stock price increase suggests a short-term positive impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100