In a significant move in the pharmaceutical landscape, Italian pharma company Recordati S.p.A has acquired the global rights to Enjaymo (sutimlimab) from Sanofi SA SNY. This acquisition comes with an upfront payment of $825 million and potential additional commercial milestone payments of up to $250 million.
Enjaymo, a humanized monoclonal antibody, holds a unique position as the only approved targeted treatment for cold agglutinin disease (CAD). CAD is a rare autoimmune disorder characterized by the premature destruction of red blood cells (hemolysis). The FDA approved Enjaymo in 2022, and it is administered as a chronic intravenous treatment.
Over the past twelve months, Enjaymo generated approximately 100 million euros ($109.70 million) in revenue. Its revenue is expected to climb to over 150 million euros in fiscal 2025, with peak sales potential projected between 250 million and 300 million euros, representing a significant increase from current levels. Recordati expects minimal revenue contribution in 2024, subject to the closing date. The transaction is anticipated to close by the end of 2024.
This strategic acquisition is expected to be immediately accretive to Recordati’s earnings at the EBITDA level, with margins surpassing the current average for rare diseases as of 2025. Recordati plans to fund the deal with existing cash and new committed bank debt facilities. At the end of 2024, net debt is expected to be around 2.4 to 2.5x EBITDA (Pro-forma), with a projected decrease to less than 2.0x EBITDA by the end of 2025, assuming no further business development transactions.
Sanofi continues to be active in strategic investments. In September, the company agreed to make a $27 million investment in Ventyx Biosciences Inc. They also secured an exclusive right of first negotiation for certain rights related to the VTX3232 program.
As of Friday, SNY stock saw a 0.31% increase, closing at $55.71.
