Back in 2018, Revolution Medicines launched its SHP2 inhibitor with a splash thanks to a $550 million licensing deal with Sanofi. But, after four years, Sanofi is docking the deal.
Details on what prompted Sanofi’s decision were sparse in Revolution’s Wednesday evening announcement, with the company saying notification of the decision was delivered Tuesday.
In a statement, a Sanofi spokesperson said the decision was made after a recent pipeline review and reprioritization. For now, Revolution says Sanofi’s move does not change the development plans for the RAS companion.
“Going forward, our strategy for developing RMC-4630 is unaffected by their decision, and we continue to expect to provide topline data from our RMC-4630-03 study in the second half of 2023,” said CEO Mark Goldsmith, M.D., Ph.D.
The formal parting of the two companies marks the end of a partnership that catapulted Revolution onto the scene, launched by Third Rock Ventures. A year after the deal with Sanofi was announced, Revolution closed a $100 million series C, followed by a $238 million IPO in 2020.
The Sanofi deal was backloaded with $500 million in biobucks in exchange for full rights to RMC-4630 except in the U.S. where Revolution had the option to chip in on promotional work and profits. Sanofi also committed to covering R&D costs for developing the med.
The promise of the SHP2 inhibitor centered on its ability to tackle the RAS-MAP kinase pathway, where research suggested the SHP2 enzyme contributed to the oncogenic traits of some mutated proteins.
Revolution and Sanofi were testing the med in a variety of cancers, including a phase 2 trial in patients with non-small cell lung cancer when combined with Amgen’s KRAS inhibitor Lumakras. Beyond RMC-4630, Revolution is developing its own slate of KRAS inhibitors, including one targeting the exact mutation that Lumakras takes aim at. But the SHP2 inhibitor is Revolution’s only asset that’s progressed into phase 2.
Revolution expects Sanofi to hold up its end of the bargain during the transition, including reimbursement for any related costs. As a result, the company is shrinking its expected GAAP net loss by $15 million. The company’s cash runway remains unchanged, however, with enough money to last through 2024.