Sanofi Halts Venglustat Clinical Program

Sanofi (SNYNF) has halted its venglustat clinical trial for the treatment of polycystic kidney disease as a Phase 2/3 study of the treatment did not meet its futility criteria. Venglustat is an oral investigational therapy that inhibits abnormal glycosphingolipid (GSL) accumulation.

Sanofi’s Global Head of Research and Development, John Reed, M.D., Ph.D. said, “The venglustat development program started with our confidence in the promise of a potential breakthrough treatment to address the unmet needs of people living with lysosomal storage disorders.”

Reed added, “In parallel, we set out to evaluate venglustat in autosomal dominant polycystic kidney disease, a leading cause of kidney transplant. This outcome is not what we hoped for, especially for these patients. However, our research has furthered the scientific understanding of ADPKD by demonstrating that modulating the GSL pathway is insufficient to restore kidney function in adults affected by this disease.”

Additionally, Sanofi has completed active clinical studies evaluating venglustat in Gaucher disease type 3, Fabry disease, and GM2 Gangliosidosis. (See Sanofi stock analysis on TipRanks)

Recently, Leerink Partners analyst Geoff Porges reiterated a Hold rating on the stock with a price target of $134.15 (27.8% upside potential).

On Sanofi’s Q1 earnings call Porges asked if Sanofi’s dupixent revenue target of EUR10 billion was a bit conservative given positive developments.

Sanofi CEO Paul Hudson answered that the company has a strong clinical development program, is commercially disciplined, and is keeping track of developments in China. Sanofi has guided for a EUR10 billion-plus figure and may add more detail over time.

Based on 6 Buys, 3 Holds, and 1 Sell, consensus among analysts is that Sanofi is a Moderate Buy with average analyst price target of $119.63, implying 13.9% upside potential.

Shares have gained 9.3% so far this year.

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