Sanofi is acquiring Vigil Neuroscience for $470 million to expand its Alzheimer’s drug portfolio, focusing on TREM2-targeting therapies like VG-3927. Learn how this acquisition strengthens Sanofi’s neurology and immunology strategy.
Sanofi is acquiring biotechnology company Vigil Neuroscience in a $470 million deal to strengthen its presence in Alzheimer’s disease treatment. The deal includes VG-3927, Vigil’s most advanced experimental drug, which targets the TREM2 protein associated with Alzheimer’s.
Sanofi had previously invested $40 million in Vigil, which gives the pharmaceutical giant a strategic edge if Vigil’s TREM2-amplifying drugs move toward licensing. VG-3927 recently completed early-phase trials in both healthy volunteers and Alzheimer’s patients. Vigil’s CEO, Ivana Magovčević-Liebisch, noted that the buyout will help accelerate development of this potentially transformative treatment.
TREM2 is considered a promising target in Alzheimer’s research because it activates immune responses in the brain when harmful amyloid-beta plaques are present. Malfunctioning TREM2 can lead to inflammation, nerve damage, and cell death—key factors in Alzheimer’s progression. Sanofi’s head of R&D, Houman Ashrafian, emphasized that TREM2 connects immune system dysfunction to neurological diseases, aligning with Sanofi’s expertise in immunology.
Although Sanofi will not acquire VGL101—another compound from the Vigil platform—those rights will revert to its original licensee, Amgen.
Sanofi has traditionally focused on immunology, oncology, and rare diseases, with neurology playing a relatively minor role. Its only marketed neurology drug, Aubagio for multiple sclerosis, accounted for less than 1% of biopharma sales last year. However, the company is actively expanding in this area. Several advanced-stage candidates—including frexalimab for MS, lupus, and type 1 diabetes, riliprubart for chronic inflammatory demyelinating polyneuropathy (CIDP), and tolebrutinib for MS—are in the pipeline. Tolebrutinib, acquired through a $3.7 billion deal with Principia Biopharma in 2020, is currently under FDA review with a decision expected by September.
The acquisition of Vigil supports Sanofi’s long-term strategy to address critical unmet needs in neurology through immunology-based therapies. Provided a majority of Vigil shareholders approve, the deal is expected to close between July and September. Key investors, including Atlas Venture and Bruce Booth—who collectively own 16.2% of Vigil shares—have already agreed to support the transaction.
In addition to the $8 per share offer, Vigil shareholders will receive a contingent value right worth $2 per share if VG-3927 achieves its first commercial sale. While Vigil’s stock opened at $14 when it went public in January 2022, its value has since dropped, making this acquisition a compelling exit. Analyst Myles Minter described the outcome as favorable for shareholders, given current market conditions and drug development progress.
This move reinforces Sanofi’s commitment to building a stronger foothold in Alzheimer’s research and broadening its neuroscience portfolio with immune-focused treatments.
