Sanofi linked to takeover bid for Ocular Therapeutix

Sanofi is reported to be preparing a move to take control of US biotech Ocular Therapeutix, after an initial bid was rejected last year.

That is according to French newspaper La Lettre, which said Sanofi made an initial $16 per share offer for Ocular last summer that was turned down for undervaluing the company, and is now working on a sweetened deal.

The Bedford, Massachusetts company's share price is currently running at $11.28, giving it a market valuation in the region of $2.4 billion.

Sanofi's interest comes as Ocular is gearing up to file for approval of Axpaxli (OTX-TKI), a new formulation of axitinib that can be injected into the eye and is being developed initially for wet age-related macular degeneration (wAMD), with a programme in diabetic retinopathy also planned.

Originally developed as Inlyta by Pfizer and used as a treatment for kidney cancer, small-molecule VEGF inhibitor axitinib is now available as a generic in the US. Ocular has developed a bioresorbable, intravitreal hydrogel incorporating the drug that is in a phase 3 trial in wAMD – called SOL-1 – due to generate results in the first quarter of this year.

SOL-1 is billed as the only ongoing, pivotal trial that is designed to gauge whether a drug is superior to Regeneron and Bayer's $9.5 billion blockbuster wAMD therapy Eylea (aflibercept 2mg), which also works by blocking VEGF. Ocular has said it hopes to secure "a potential superiority label and best-in-class durability" with its product.

Axpaxli is generating the most buzz around Ocular, which already has one drug on the market – Dextenza, a corticosteroid used in eye surgery and to treat allergic conjunctivitis – which makes around $15 million a quarter in sales.

Taking control of Ocular would also give Sanofi access to its drug delivery platform Elutyx, which could have applications for drugs in its pipeline with potential in ophthalmological diseases, as well as another candidate (OTX-TIC) in midstage trials for glaucoma and ocular hypertension.

If confirmed, it would be the second M&A play by Sanofi in the last few weeks, coming after it agreed to buy vaccine developer Dynavax for $2.5 billion in December.

Last year, the French group also bought vaccines specialist ViceBio for $1.6 billion and Blueprint Medicines for $9.1 billion, bolstering its pipeline as it prepares for the possible loss of patent protection for top-selling drug Dupixent (dupilumab) in the early 2030s.

Sanofi has not commented on the speculation about its interest in Ocular.

Photo by Lisette Harzing on Unsplash