by Pauline Foret
(Reuters) – Sanofi said on Monday its leading multiple sclerosis drug candidate failed to meet the primary endpoint of two late-stage trials, but the French company’s shares still rose as investors expected even worse results from the study.
On the Paris Stock Exchange, at around 07:15 GMT, the share price rose 3.2% to 104.44 euros, moving it into first place in the CAC40, which itself posted a drop of 0.3%.
The French drugmaker said two phase III trials showed its experimental daily drug, tolebrutinib, was no more effective than Aubagio, its regular multiple sclerosis drug.
Sanofi said a third, separate late-stage trial showed tolebrutinib met its primary goal of treating a progressive – or steadily worsening – form of MS that is less common and currently untreatable.
In this trial, Sanofi’s drug candidate slowed disability progression compared with placebo.
According to a note published by Jefferies, these results are similar to their base case scenario and represent an “upward revision of the current consensus”.
According to the note, while the results are mixed, tolebrutinib still represents a largely de-risked opportunity worth $1-2 billion, as investors had lost some hope after the disappointing results for Merck KgaA’s drug evobrutinib.
The French pharmaceutical group added that it will discuss these results with regulators, with the aim of filing an application for approval by the end of 2024.
(Written by Ludwig Burger and Margarita Choy, with contributions from Pauline Foret, Mara Mara Vîlcu, edited by Augustin Turpin)
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