Sanofi drops rare disease drug purchase after FTC files suit

Sanofi SA said Monday it was canceling plans to license Maze Therapeutics Inc.’s treatment for a rare genetic disorder after the Federal Trade Commission sued to block the deal.

The French drugmaker said it was disappointed with the FTC’s actions, which it said would hold up bringing Maze’s drug for Pompe disease to the market.

“The delay associated with a long litigation has led Sanofi to conclude that it would not be in the best interests of patients to contest this litigation,” the company said in a statement. “Sanofi will therefore be terminating the agreement with Maze.”

Maze said it disagreed with the FTC suit, which it said marked the first time ever the agency sought to block the licensing of a treatment that early in its development. The company said it was evaluating its business and legal options.

“Sanofi’s decision not to pursue this anticompetitive transaction is another big win for patients in need of life saving medication,” FTC spokesperson Victoria Graham said. “It’s also a victory for innovation, incentivizing firms to develop medications that provide patients better quality of care at lower prices.”

The US-listed shares of Sanofi were unchanged at $47.15 in post-market trading.

The FTC complaint sought a preliminary injunction blocking the deal while a trial is held in the agency’s administrative court.

Under Chair Lina Khan, the FTC has taken a more aggressive stance on mergers, particularly in tech and pharmaceutical markets. Earlier this year, the agency sued to block Amgen Inc. from buying Horizon Therapeutics, though the companies and FTC later reached a settlement.

The case is FTC v Sanofi, 23-cv-13046, District of Massachusetts (Boston).

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