Wedoany.com Report-Dec.16, South Korean biotechnology company ADEL announced late Monday a partnership agreement valued at up to 1.04 billion U.S. dollars with French pharmaceutical firm Sanofi to jointly develop and commercialize ADEL's experimental treatment for Alzheimer's disease.

The collaboration centers on ADEL-Y01, an antibody-based therapy that targets specific harmful modifications of a protein associated with Alzheimer's progression. The candidate is presently undergoing early-phase clinical trials in the United States.

Under the deal terms, ADEL will receive an initial payment of 80 million dollars, followed by potential additional payments contingent on achieving predefined development, regulatory, and sales milestones. The company will also earn royalties on any future product sales.

"ADEL's innovative approach to targeting tau acetylation offers a promising and differentiated mechanism for addressing the underlying causes of Alzheimer's disease," said Erik Wallstroem, global head of Multiple Sclerosis, Neurology and Gene Therapy Development at Sanofi.

This agreement marks a significant step for ADEL in advancing its pipeline through partnership with an established global pharmaceutical company, providing both financial resources and expertise in late-stage development and commercialization.

On the same day, Sanofi entered another collaboration with privately held biotechnology firm Dren Bio, focused on developing therapies for autoimmune conditions, with a potential total value reaching 1.7 billion dollars.

The partnership with ADEL reflects ongoing industry interest in novel approaches to neurodegenerative disorders, particularly Alzheimer's disease, where current treatment options remain limited. Antibody therapies targeting pathological proteins have emerged as a key area of research, aiming to modify disease progression rather than solely manage symptoms.

Sanofi's involvement underscores its strategic focus on expanding its neurology portfolio through external innovation. The company continues to pursue multiple therapeutic modalities across neurological and immunological conditions.

For ADEL, the deal provides substantial non-dilutive funding to support continued clinical advancement of ADEL-Y01 while retaining economic participation in potential future success. Early-stage trial results will be closely monitored as they could influence subsequent milestone achievements.

Both companies expressed commitment to accelerating development timelines to address unmet medical needs in Alzheimer's care. The collaboration combines ADEL's specialized research in protein modification mechanisms with Sanofi's extensive experience in global clinical trials and regulatory processes.

Industry observers note that such licensing agreements are common in biotechnology, enabling smaller firms to access resources necessary for costly late-stage studies while allowing larger partners to bolster their pipelines with innovative candidates.