French healthcare company Sanofi S.A. (Euronext Paris:SAN) (Nasdaq:SNY) announced on Thursday that it has entered into an agreement to acquire Vigil Neuroscience Inc (NASDAQ:VIGL), a clinical-stage biotechnology company focused on neurodegenerative diseases, for approximately USD470m in cash.

This acquisition will add VG-3927, an oral TREM2 agonist currently in phase 2 development for Alzheimer's disease, to Sanofi's neurology pipeline. VG-3927 is designed to enhance microglial function, potentially reducing neuroinflammation and slowing disease progression.

Current Alzheimer's therapies are limited in efficacy and accessibility, underscoring the need for novel treatments like VG-3927.

Vigil's second programme, VGL101, is not part of the transaction.

In 2024, Sanofi invested USD40m in Vigil and secured negotiation rights for VG-3927, positioning this acquisition as a strategic follow-up to that investment. Shareholders of Vigil will receive USD8 per share in cash and a contingent value right of USD2 per share tied to VG-3927's first commercial sale.

The deal is expected to close in the third quarter of 2025, pending customary regulatory and shareholder approvals. Sanofi stated that the acquisition will not affect its 2025 financial guidance.