2023-12-11 16:42:25 ET
French drugmaker Sanofi ( NASDAQ: SNY ) on Monday said it would terminate a previously announced licensing deal with U.S. biotech Maze Therapeutics for an investigational Pompe disease treatment candidate, after the agreement was challenged by the U.S. Federal Trade Commission (FTC).
Sanofi ( SNY ) and San Francisco, Calif.-based Maze inked a licensing deal in early May for the latter's glycogen synthase 1 (GYS1) program, including clinical candidate MZE001 which is being developed for the treatment of Pompe disease and other potential indications.
Pompe disease is a rare genetic disorder that causes a buildup of glycogen, which is a stored form of sugar used for energy. This buildup can progressive damage to the heart and skeletal muscles.
The FTC earlier in the day said it was seeking to block the licensing deal.
"The Commission today issued an administrative complaint and authorized a lawsuit in federal court alleging the deal, valued at up to $755M, would eliminate a nascent competitor poised to challenge Sanofi’s ( SNY ) monopoly in the Pompe disease therapy market," the FTC said in a statement .
"The complaint ... alleges the transaction would protect Sanofi’s ( SNY ) monopoly and eliminate competition between Sanofi ( SNY ) and Maze to develop new Pompe drugs, denying patients and doctors the benefits of competition, including lower prices and greater innovation," the agency added.
As per the terms of the licensing deal, Maze was to get an upfront payment of $150M from Sanofi ( SNY ) and the eligibility to get up to an additional $600M in milestone payments.
"The delay associated with a long litigation has led Sanofi ( SNY ) to conclude that it would not be in the best interests of patients to contest this litigation and Sanofi ( SNY ) will therefore be terminating the agreement with Maze in accordance with its terms," the French drugmaker said in a separate statement .
We respectfully disagree with the action by the FTC ... The Maze partnership was designed to apply Sanofi’s ( SNY ) resources, knowledge, and expertise to accelerate the development of MZE001," the company added.
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Sanofi pulls the plug on licensing deal with Maze Therapeutics after FTC challenge