Sanofi (SNY) Is Planning for a Patent Loss, Here’s Where Bulls Still See Opportunity

The FDA mandates that manufacturers of GLP-1 drugs, including Novo Nordisk's Ozempic and Wegovy, Eli Lilly's Mounjaro and Zepbound, add warnings about a rare eye condition that may cause vision loss. The agency's review followed a study linking semaglutide to increased risk, though drugmakers and eye doctors note the risk is small and not definitively causal. The FDA advises patients to consult doctors if symptoms arise.

The FDA requires GLP-1 drug makers to warn of potential vision loss. Affected drugs include Ozempic and Wegovy. The condition, NAION, is rare, and studies are inconclusive. Eli Lilly, Novo Nordisk, and Sanofi are involved. The FDA reviewed clinical data and case reports. Novo Nordisk disputes the claims, citing a 2026 study.

The FDA is requiring new warnings on GLP-1 drugs like Ozempic, Wegovy, Mounjaro, and Zepbound due to a potential link to NAION, a rare eye condition causing vision loss. Novo Nordisk and Eli Lilly acknowledge the FDA's update but maintain confidence in their products' safety. The FDA's decision follows a 2024 study in JAMA Ophthalmology.

Nurix Therapeutics (NRIX) shares fell 38% after Sanofi (SNY) terminated development of a key Phase I immunology candidate, SAR448272 (NX-3911), under their collaboration. Despite this, the rest of the collaboration remains intact, and Nurix maintains a strong cash position. Analysts note Nurix's potential in the oral protein degrader space, particularly its partnership with Roche (RO) for bexobrutideg (NX-5948), which targets a $48B market opportunity across five diseases.

Analysts from Jefferies and Canaccord Genuity maintained Buy ratings on BioNTech (BNTX), with price targets of $138 and $132, respectively. Meanwhile, J.P. Morgan and RBC Capital maintained Hold ratings on Sanofi (SNYNF), with targets of EUR95 and EUR75. Both companies have Moderate Buy consensus ratings.

Sanofi halted development of SAR448272, an immune disease drug licensed from Nurix, due to nonclinical findings. Nurix received a $10M payment earlier and shares dropped over 40%. Sanofi still sees potential in the STAT6 pathway but not this specific molecule. Nurix and Sanofi partnered in 2020 with a potential $2.5B deal.