Sanofi(US:SNY) Hua Er Jie Jian Wen·2025-12-24 10:38Core Viewpoint - Sanofi has agreed to acquire US vaccine company Dynavax for approximately $2.2 billion to expand its vaccine business, which is currently focused on flu vaccines. This acquisition comes alongside an unexpected FDA rejection of Sanofi's experimental drug for multiple sclerosis, tolebrutinib [1][4]. Group 1: Acquisition Details - Sanofi will purchase Dynavax for $15.50 per share in cash, enhancing its position in the adult immunization market with Dynavax's existing hepatitis B vaccine and an experimental shingles vaccine currently in early human trials [1][3]. - The shingles vaccine has demonstrated commercial potential, as evidenced by competitor GlaxoSmithKline's significant revenue increase from a similar product. Additionally, research suggests a possible link between the vaccine and reduced dementia incidence [3]. Group 2: Market Challenges - The global vaccine market is facing challenges, including a decline in flu vaccine sales, increased price competition in Europe, and a decrease in vaccination rates in the US. The Secretary of Health and Human Services has been disrupting long-standing vaccine guidelines, particularly for childhood vaccines [4]. - Sanofi's CFO noted a general decline in global vaccination rates, attributing it to post-COVID vaccine fatigue and negative sentiments towards vaccines [4]. Group 3: Impact of FDA Rejection - The FDA's rejection of tolebrutinib represents a significant setback for Sanofi, with previous forecasts estimating peak annual sales of the drug at $17 billion. The development process has been challenging, with prior trials indicating potential liver damage risks [4][6]. - Analysts have expressed concerns regarding management's judgment and credibility due to the substantial investment in tolebrutinib's development. The likelihood of the drug receiving FDA approval has now significantly decreased [5][6].