EU Accepts Sanofi Concessions to End Vaccine Antitrust Probe

Recursion Pharmaceuticals (RXRX) announced a $10 million milestone payment from Sanofi for optioning a development candidate, bringing total payments to $144 million. The candidate, a potential first-in-class oral small molecule for immunology, will enter phase 1 trials in 2027. Recursion may earn over $300 million in additional milestones and royalties if successful.

Recursion Pharmaceuticals (RXRX) and Sanofi have collaborated to develop a potential first-in-class oral medicine for inflammatory diseases. Sanofi has optioned the first development candidate, triggering a milestone payment. The candidate is expected to enter phase 1 clinical trials in 2027, with Sanofi funding further development. Recursion's AI-enabled drug discovery platform was used in the development.

Sanofi agreed to stop disparaging rival flu vaccine Fluad (CSL Seqirus) in EU antitrust settlement. The company must correct claims and change promotional practices until 2030, avoiding a fine but facing penalties if commitments aren't met. Sanofi's 2025 turnover was €47 billion. The case focused on misleading scientific claims about a competitor's product.

The European Commission made Sanofi's commitments legally binding, requiring the company to correct potentially misleading messages about a rival flu vaccine and restrict promotional claims in Germany and France. The decision addresses concerns about campaigns against Fluad, a vaccine marketed by CSL Seqirus, but does not establish that Sanofi infringed EU antitrust rules.

Janssen and Sanofi's ExPEC9V vaccine trial for invasive E. coli disease was discontinued after showing 14.6% efficacy, failing to protect against infections despite a strong immune response. The Lancet study suggests the vaccine's immunity may not have been sufficient. Further analysis is needed to understand the failure.

A phase 3 trial for ExPEC9V, a vaccine developed by Janssen and Sanofi to prevent invasive E. coli disease (IED) in older adults, was discontinued after showing only 14.6% efficacy. The trial, involving 17,000 participants, found that while the vaccine induced a strong antibody response, it did not prevent IED cases. Investigators suggest the immune response may not have been sufficient for clinical protection. Further analysis is needed to understand the failure.