This blog is another installment in a series, Innovations Advanced by M&A, that underscores the unique role of mergers and acquisitions in promoting a competitive and innovative life sciences ecosystem for patients. You can find previous blogs in this series here.
Bringing a new treatment or cure from the lab to the patient is a complex and resource-intensive process, one that many innovative, early-stage biopharmaceutical companies are unable to complete alone. Mergers and acquisitions (M&A) serve as a critical bridge, enabling innovative companies of all sizes to partner and pair their promising biopharmaceutical discoveries with the resources and expertise needed to turn them into approved medicines for patients.
As one example, Sanofi’s acquisition of Kadmon allowed the smaller company to “pass the baton” to a larger company, and leverage Sanofi’s established infrastructure to expand the global reach of a first-in-class treatment for chronic graft-versus-host disease (cGVHD).
cGVHD is a serious, often life-threatening condition affecting up to half of all allogeneic stem cell transplant recipients. It occurs when donor immune cells attack the recipient’s body and can cause lifelong complications. Despite advances in transplant medicine, a lack of effective, disease-modifying treatment options for cGVHD previously created a barrier to a positive outcome for patients who received a stem cell transplant.
Recognizing this urgent unmet need, Kadmon set out to develop Rezurock, which was approved by the FDA in 2021 as the first therapy to specifically treat cGVHD. Although Kadmon possessed the specialized expertise in treating immune-mediated conditions like cGVHD, they needed a partner with the capabilities and experience needed to bring this innovative therapy to patients at scale. Kadmon was acquired by Sanofi later that year.
“Sanofi is an ideal partner to advance Kadmon’s mission, bringing our transformative therapies to patients with serious unmet medical needs. This acquisition enhances the reach of our therapies and accelerates our ability to deliver Rezurock to those who need it most.”
– Harlan Waksal, M.D., President and CEO, Kadmon (September 2021)
This deal gave Kadmon the backing of the larger company’s global manufacturing and distribution resources to be able to bring Rezurock to more patients in need. Simultaneously, Sanofi’s extensive experience in immunology and rare diseases allowed them to continue to invest in large-scale clinical trials, seeking to expand the use of Rezurock to earlier in a patient’s journey.
“With Rezurock, we saw a treatment that could make a real impact for patients who have exhausted other options. By bringing Kadmon into the Sanofi family, we’ve been able to ensure that this innovative therapy reaches more people and is backed by the resources needed to support long-term research and development.”
– John Reed, M.D., Ph.D., Global Head of Research and Development, Sanofi (September 2021)
This example highlights the unique and fundamental role of life sciences M&A in supporting innovation, competition and growth in the American biopharmaceutical industry. By allowing companies of all sizes to focus on what they do best, and partner when it makes sense, life sciences M&A facilitates a broad and efficient allocation of resources, funding and expertise that helps new medicines reach patients faster. Ensuring a policy environment that supports pro-innovation life sciences M&A is essential to drive the next wave of medical breakthroughs and maintain the status of America’s life sciences industry as a global leader in biopharmaceutical innovation.