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Sanofi inked a deal to co-develop and commercialize oral anti-inflammatory drugs resulting from Recludix Pharma’s STAT6 platform technology. 

STAT6 (signal transducer and activator of transcription 6), is a type of protein believed to play a key role in multiple dermatological and respiratory diseases. Under terms of the deal, the two companies will collaborate to advance a preclinical oral STAT6 inhibitor for patients with immunological and inflammatory (I&I) diseases.

The tie-up “speaks to our ability to successfully solve the challenge of drugging this attractive, yet elusive, therapeutic target,” Recludix CEO Nancy Whiting said in a statement Thursday. “This strategic collaboration empowers the program while ensuring meaningful development participation and economic value for Recludix.”

Under terms of the deal, Recludix will receive $125 million in near-term payments and may receive more than $1.2 billion in potential development, regulatory and sales milestones. The biotech will advance any STAT6 inhibitors from preclinical research and development until the start of Phase 2 trials. 

Thereafter, Sanofi will assume worldwide clinical development and commercialization responsibilities. Sanofi will have global rights to small-molecule STAT6 inhibitors, and Recludix has the option to participate in U.S. profit/loss share, including up to double-digit royalties on possible future product sales.

“Recludix’s approach to targeting STAT6 has significant potential for a number of I&I diseases, especially where a precisely tailored oral therapy could best fit within the patient’s needs at various stages of disease,” stated Frank Nestle, Sanofi’s global head of research and chief scientific officer. “We are excited to partner with the Recludix team to continue to advance innovative strategies for targeting this previously considered undruggable target, aligned with our mission to best serve patients with inflammatory disease.”

Sanofi, of course, brings solid I&I therapeutic area expertise and capabilities. The French drugmaker markets Dupixent, one of the pharma world’s top-selling anti-inflammatories and the only targeted biologic with Food and Drug Administration approval for moderate-to-severe atopic dermatitis. It’s injected every two weeks to inhibit IL-4 and IL-13.

However, across the broader landscape, the notion of oral drugs as therapeutics for advanced I&I conditions is having a bit of a moment. Other small biotechs have released data that analysts see as having implications on the outlook in this area.

These include Janssen partner Protagonist’s oral IL-23 inhibitor JNJ-2113. Recently announced Phase 2 data for JNJ-2113 in psoriasis showed its response rate compared well with that of the big drugmaker’s injectable autoimmune brands Stelara and Tremfya.

Competing oral approaches in psoriasis also include Dice Therapeutics and its lead oral IL-17 program DC-806, which Eli Lilly recently said it’s acquiring for $2.4 billion, as well as other companies focused on TYK2 inhibition like Takeda and Ventyx Biosciences.