Sanofi Expands AI-Driven Bispecific Antibody Collaboration with Earendil Labs in $2.5B Deal

Sanofi has announced a new collaboration with U.S. artificial intelligence research biotech Earendil Labs, marking a significant expansion of their partnership in the development of bispecific antibodies for autoimmune and inflammatory diseases. The deal, which could reach a total value of $2.56 billion, underscores Sanofi's commitment to leveraging AI-driven technologies in drug discovery and development.

Deal Structure and Financial Terms

The latest agreement sees Sanofi offering $160 million in upfront and near-term milestone payments to apply Earendil's AI-powered discovery platform to multiple bispecific autoimmune and inflammatory disease programs. Earendil stands to receive additional development and commercial milestone payments, potentially bringing the deal's total value to $2.56 billion. Furthermore, the biotech will be eligible for tiered royalties up to low double-digit percentages on sales of any resulting marketed bispecific drugs.

Sanofi will take charge of the development and worldwide commercialization of all bispecific candidates resulting from this collaboration. This arrangement builds upon a previous pact signed in April 2025, where Sanofi secured exclusive worldwide rights to two of Earendil's bispecific antibodies for $125 million.

Expanding the Autoimmune and Immunology Pipeline

The collaboration aims to broaden Sanofi's autoimmune disease pipeline, with a focus on developing next-generation biologics. Earendil's CEO, Jian Peng, Ph.D., emphasized the potential of their approach: "By combining advanced predictive protein modeling with high-throughput experimental validation, we can identify and optimize bispecific antibody candidates more efficiently and precisely."

This partnership is part of Sanofi's broader strategy to bolster its autoimmune and immunology portfolio. Over the past year, the company has engaged in several significant deals, including a $480 million agreement with Nurix for a protein degrader and a $1.6 billion pact with Dren Bio for a CD20-directed antibody targeting B-cell non-Hodgkin lymphoma.

Earendil's AI-Driven Platform and Clinical Progress

Earendil Labs, which describes itself as a "global leader in AI-driven research and development of next-generation biologics therapeutics," has made notable progress in bringing its AI-discovered candidates to the clinic. In July, the company announced the completion of dosing for the first cohort in a phase 1 study of HXN-1001, an anti-TL1A antibody being investigated for inflammatory bowel diseases such as ulcerative colitis and Crohn's disease.

The biotech's platform has already yielded promising candidates, including HXN-1002, which targets α4β7 and TL1A for ulcerative colitis and Crohn's disease, and HXN-1003, targeting TL1A and IL23 for colitis and skin inflammation. These assets, now under Sanofi's purview, showcase the potential of Earendil's AI-driven approach in identifying novel bispecific antibodies for complex autoimmune conditions.