Adagene stock jumps after Sanofi’s $25 million strategic investment

Published 01/07/2025, 13:34
Adagene stock jumps after Sanofi’s $25 million strategic investment

Investing.com -- Adagene Inc. (NASDAQ:ADAG) stock surged 6.1% after the antibody-based therapeutics company announced a strategic investment of up to $25 million from Sanofi (EPA:SASY) and the expansion of their partnership.

The investment will fund Adagene’s research and development activities, including clinical development of muzastotug (ADG126), an anti-CTLA-4 SAFEbody, through a randomized phase 2 trial in microsatellite stable colorectal cancer (MSS CRC).

As part of the expanded collaboration, Adagene will supply Sanofi with muzastotug to evaluate its safety, efficacy, pharmacokinetics, and biomarker data in combination with other anticancer therapies. The phase 1/2 clinical trial will include over 100 patients with advanced solid tumors, while Adagene retains worldwide commercial rights to muzastotug.

Additionally, Sanofi exercised its option to select a third SAFEbody discovery program, utilizing Adagene’s proprietary masking technology and antibody engineering expertise. This selection triggers an option exercise fee, as well as potential milestone payments and royalties under their 2022 partnership agreement.

"Expanding our partnership with Sanofi highlights the potential of our SAFEbody platform and the clinical proof of concept for ADG126, our masked anti-CTLA-4 program and the most advanced of its kind," said Peter Luo, Chairman, CEO and President of R&D at Adagene.

The company reported audited cash and cash equivalents of $85.2 million as of December 31, 2024. Combined with Sanofi’s investment, Adagene expects to fund planned operations into 2027.

Following the investment, a Sanofi representative will join Adagene’s Scientific Advisory Board to provide strategic advice on scientific and clinical aspects of the company’s activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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