What's Happening?
Sanofi is reportedly preparing a renewed bid to acquire Ocular Therapeutix, a U.S. biotech company, after an initial offer was rejected last year. According to French newspaper La Lettre, Sanofi's initial bid of $16 per share was turned down for undervaluing the company. Ocular Therapeutix, based in Bedford, Massachusetts, is currently valued at approximately $2.4 billion. The company is advancing its drug Axpaxli (OTX-TKI), a formulation of axitinib for wet age-related macular degeneration (wAMD), which is in a pivotal phase 3 trial. Sanofi's interest in Ocular Therapeutix is driven by the potential of Axpaxli and the company's drug delivery platform, Elutyx, which could enhance Sanofi's pipeline in ophthalmological diseases.
Why It's Important?
The acquisition
of Ocular Therapeutix would bolster Sanofi's position in the ophthalmology sector, providing access to innovative drug delivery technologies and promising therapeutic candidates. This move aligns with Sanofi's strategy to expand its portfolio and mitigate the impact of potential patent expirations, such as that of Dupixent in the early 2030s. The acquisition could enhance Sanofi's competitive edge in the lucrative wAMD market, challenging existing treatments like Eylea. For Ocular Therapeutix, the acquisition could provide the resources needed to accelerate the development and commercialization of its pipeline products.
What's Next?
If the acquisition proceeds, Sanofi will likely focus on integrating Ocular Therapeutix's technologies and advancing Axpaxli through regulatory approvals. The outcome of the ongoing phase 3 trial for Axpaxli will be crucial in determining the drug's market potential. Additionally, Sanofi may explore further applications of the Elutyx platform across its existing pipeline. Stakeholders will be watching closely for official announcements from Sanofi regarding the acquisition and any strategic shifts in its ophthalmology division.
