Sanofi has agreed to acquire Vigil Neuroscience in a $470m deal, nearly a year after investing an initial $40m in the company.

The deal will see Sanofi acquire all outstanding common shares of US-based Vigil for $8 per share in cash at closing.

Virgil’s shares closed at $2.31 on 21 May, meaning Sanofi is paying a premium of 246%. Vigil has a current market cap of $107.8m.  

Part of the deal also includes an additional $2 cash payment per share upon the first commercial sale of Vigil’s Alzheimer’s asset, VG-3927.

Although Vigil has two candidates in its pipeline, Sanofi’s buyout centred around the potential of VG-3927. Indeed, Vigil’s other programme – the fully human monoclonal antibody iluzanebart dubbed VGL101 – is not part of the acquisition and will return to its original licensor, Amgen.

Sanofi has not hidden its high regard for VG-3927, with the $40m investment made in June 2024 giving the French drugmaker the exclusive right of first negotiation regarding its licensing.

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With the buyout of Vigil, Sanofi now has full control of VG-3927, including research, development, manufacturing, and commercialisation duties.  

VG-3927 is an oral small-molecule agonist of triggering receptor expressed on myeloid cells 2 (TREM2). Evidence so far suggests that activating TREM2 could enhance the neuroprotective function of microglia – the resident immune cells of the central nervous system – in Alzheimer’s. Indeed, genetic factors such as rare variants of TREM2 of developing the disease.

Vigil has reported positive data from a Phase I clinical trial (NCT06343636) evaluating VG-3927 in healthy volunteers. The drug demonstrated a favourable safety and tolerability profile across all cohorts – including the elderly cohort – of 115 participants. Vigil planned to advance the therapy into a Phase II trial in Q3 2025, as per an April update. Sanofi did not comment on whether the timeline will be affected by the acquisition, confirming only that it would go ahead into a Phase II clinical study. 

“TREM2 represents a compelling target at the intersection of immune dysregulation and neurodegeneration, particularly in people living with Alzheimer’s because they face devastating cognitive decline with limited treatment options,� said Houman Ashrafian, Sanofi’s head of research and development.

Currently approved therapies such as Eisai and Biogen’s Leqembi (lecanamab) and Eli Lilly’s Kisunla (donanemab) do not stop or reverse disease progression. While gaining approvals in multiple regions, the drugs have struggled in national coverage schemes due to questions around cost efficiency. Sanofi believes its new asset can fill this unmet need for Alzheimer’s patients, along with delivering a “safer and [more] convenient� option.

“Vigil’s expertise is complementary to our capabilities in neurology and reinforces our dedication to developing innovative medicines to improve people’s lives. Vigil’s team are a welcome addition, and we look forward to working with them and the patient community,� Ashrafian added.

Vigil is not the only pharma company developing a TREM2 candidate for Alzheimer’s. Novartis is gearing up to advance its candidate VHB937 into Phase II development in H2 2025. 

William Blair analyst Myles Minter believes the deal price for Vigil “is fairly valued�, adding that the company would likely not have agreed to the buyout if the data for VGL101 was promising.

“For VG-3927, we see the orally administered small-molecule programme as differentiated from other TREM2 targeting treatments, and if successful, we believe it could lead to a paradigm shift in the treatment of Alzheimer’s disease,� Minter added in a research note.

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