Sanofi SNY announced that it has entered into an agreement with France-based cancer biotech Orano Med to jointly develop next-generation radioligand therapies for treating rare cancers.

Radioligand therapy is a type of precision cancer treatment that combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle).

Per the agreement, both Sanofi and Orano Med will design a new entity and focus on the clinical development of next-generation radioligand therapies (RLTs) based on lead-212 (212Pb) alpha-emitting isotopes. The new entity will operate under the brand of Orano Med.

Year to date, shares of Sanofi have increased 9.5% compared with the industry’s rise of 20.6%.

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Per the latest deal, Sanofi will make an equity investment of €300 million and hold around 16% of the equity stake in the new entity, which is valued at €1.9 billion.

This transaction is expected to close upon standard regulatory approvals.

The deal looks like a good strategic fit for Sanofi, which has significantly stepped up its alliance activity in recent years to diversify its oncology portfolio and advance the development of cutting-edge treatments for patients with rare cancers.

SNY's Recent Agreement for Rare Cancers

Last month, Sanofi entered into an exclusive licensing agreement with RadioMedix, a cancer biotech developing radiopharmaceuticals for PET imaging and targeted alpha therapy (TAT) and Orano Med to develop next-generation radioligand medicine for rare cancers.

The deal between Sanofi, RadioMedix and Orano Med will focus on developing a late-stage asset, AlphaMedix (212Pb-DOTAMTATE).

AlphaMedix is being studied for treating adult patients with unresectable or metastatic, progressive somatostatin-receptor-expressing neuroendocrine tumors (NETs), which is a rare form of cancer.

SNY's Zacks Rank & Stocks to Consider

Sanofi currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. ANIP, Elevation Oncology, Inc. ELEV and Voyager Therapeutics, Inc. VYGR, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have moved up from $4.69 to $4.81. Earnings per share estimates for 2025 have improved from $5.37 to $5.86. Year to date, shares of ANIP have risen 8.2%.

ANIP’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 31.32%.

In the past 60 days, estimates for Elevation Oncology’s 2024 loss per share have narrowed from 86 cents to 82 cents. Loss per share estimates for 2025 have narrowed from 90 cents to 86 cents. Year to date, shares of ELEV have increased 2.8%.

ELEV’s earnings beat estimates in three of the trailing four quarters while missing on the remaining occasion, the average surprise being 12.05%.

In the past 60 days, estimates for Voyager Therapeutics’ 2024 loss per share have narrowed from $1.47 to $1.44. Loss per share estimates for 2025 have narrowed from $1.95 to $1.94. Year to date, shares of VYGR have declined 6.2%.

VYGR’s earnings beat estimates in three of the trailing four quarters while missing on the remaining occasion, the average surprise being 104.33%.

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