Novartis and Sanofi lead major pharmaceutical licensing and alliance expansions

The pharmaceutical industry saw significant dealmaking and pipeline shifts this week. Novartis entered an exclusive worldwide licensing agreement with Abogen Biosciences for ABO2203, an experimental mRNA-encoded T-cell engager. The deal includes a $575 million upfront payment, with total potential value reaching approximately $7.8 billion through development, regulatory, and commercial milestones. ABO2203 aims to treat autoimmune diseases by instructing the body to produce molecules that deplete specific B-cell populations.

In a separate major collaboration, Sanofi and Regeneron Pharmaceuticals expanded their long-standing antibody alliance. The companies will co-develop and co-commercialize four new long-acting immunology antibodies targeting various interleukins. This expansion follows their successful partnership on the eczema drug Dupixent and includes a $1 billion upfront payment to Regeneron.

Conversely, Foghorn Therapeutics and Eli Lilly have decided to discontinue the development of FHD-909, an oral SMARCA2 degrader for cancer. The decision follows Phase I clinical data that showed insufficient antitumor activity. As a result of the program's termination, Foghorn Therapeutics announced it will reduce its workforce by approximately 40% to redirect resources toward its remaining pipeline programs.