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  • Sanofi re-enters T-cell engager space with $1.2B deal & AI biotech Earendil raises $787 million

Sanofi re-enters T-cell engager space with $1.2B deal & AI biotech Earendil raises $787 million

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Joachim Eeckhout & Eduardo Longoria
March 24, 2026

Good Morning! Parkinson’s drug development has a placebo problem but Oryon thinks it has found a workaround.

What happened: The startup is emerging from stealth with $21 million in new funding, bringing its total to $42 million, and a Parkinson’s veteran in the CEO seat. Its lead therapy implants fully developed A9 neurons – the dopamine-producing cells lost in Parkinson’s – into the patients’ brains rather than earlier-stage precursor cells. Oryon initially treats just one side of the brain, giving researchers a built-in comparison against the untreated side in the same patient. Early trial data suggest both motor improvement and brain imaging evidence of restored dopamine activity.

Why it matters: In Parkinson’s, where placebo effects can blur efficacy, combining A9 cell implantation with a one-sided trial design could give Oryon a cleaner way to prove the therapy works without having to use unethical sham surgery.

Bottom line: One brain, two sides, and a cleaner shot at proving something real.

— Joachim E.

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SNAPSHOT

Sanofi gets blessed with a trispecific antibody from Kali in exchange for a $1.2B offering

Durga Puja 2020

Why it matters: The deal underscores pharma’s renewed interest in T-cell engagers, especially for autoimmune conditions, and signals Sanofi’s push to rebuild its immunology pipeline after recent setbacks.

Backstory: T-cell engagers (TCEs) are a fast-growing drug class that redirects immune cells to attack disease targets. Sanofi previously invested heavily in TCEs (e.g., $1B Amunix acquisition in 2021) but later divested some assets. The company has faced pipeline struggles and leadership changes, including the recent ousting of its CEO. As such, it makes sense for Sanofi to license Kali’s platform, known for focusing on multispecific antibodies designed for precision and safety.

Big picture: Pharma is expanding TCE use beyond cancer into autoimmune diseases, aiming for highly targeted immune modulation with fewer side effects; an area of major unmet need.

Zoom in: The technology was paid for with $180M upfront and up to $1.05B in milestones, along with royalties. The antibody´s goal is to deplete harmful B cells while minimizing cytokine release syndrome, a key safety risk in immunotherapy. KT501 binds three targets: CD3 (T cells), CD19 and BCMA (B cells). Early data show strong B-cell depletion and reduced cytokine production in preclinical studies.

What’s next: The in-human rheumatoid arthritis trial has just started this month. Clinical data from the phase 1 trial will determine KT501’s viability. Sanofi may further expand into TCEs depending on results. Kali plans to advance additional candidates, including KT502, into the clinic soon.

SNIPPETS

What’s happening in biotech today?

🤖 AI antibodies: Earendil Labs, a U.S.- and China-based biotech startup, has raised $787 million to advance an AI-driven pipeline of biologic drugs targeting autoimmune diseases and cancer. Backed by multiple investors, including Sanofi, the funding will support scaling research and moving several programs toward clinical trials. The company, affiliated with China’s Helixon Therapeutics, reflects growing cross-border collaboration in biotech. Earendil has developed over 40 programs, with 19 in its pipeline, including a Phase 2-ready treatment for inflammatory bowel disease. Its focus includes advanced modalities like bispecific antibodies and antibody-drug conjugates, and it has already secured two major partnership deals with Sanofi worth up to $2 billion.

🦠 Lyme launch: Pfizer and Valneva plan to seek regulatory approval for their Lyme disease vaccine, LB6V, despite it missing its primary endpoint in a Phase 3 trial due to fewer-than-expected infection cases. The companies highlighted “clinically meaningful” efficacy, with analyses showing about 73–75% effectiveness after four doses, and expressed confidence in the vaccine’s potential. Lyme disease affects hundreds of thousands annually in the U.S., and there are currently no approved vaccines. While regulatory conditions may be favorable, analysts caution that commercial uptake could be limited given past challenges, with projected peak annual sales around $525 million.

🧴 Eczema win: Apogee Therapeutics reported positive Phase 2 results for its eczema drug zumilokibart, showing sustained effectiveness with dosing every three or six months, potentially offering a less frequent alternative to existing treatments like Dupixent and Ebglyss. In the study’s maintenance phase, 75% to 85% of prior responders maintained significant symptom improvement after one year, with broader data indicating increasing rates of skin clearance over time. The drug demonstrated a safety profile comparable to current therapies, with few discontinuations. These results position zumilokibart as a competitive next-generation option in the eczema market, driving Apogee’s shares up more than 20% and supporting plans for Phase 3 trials.

💪 Muscle miss: Genentech has halted development of its anti-myostatin antibody emugrobart for two rare muscle-wasting diseases, spinal muscular atrophy and facioscapulohumeral muscular dystrophy, after trials showed it failed to consistently improve muscle growth and function. The setback raises concerns about the drug’s prospects in ongoing obesity studies, where it is being tested alongside Eli Lilly’s tirzepatide to preserve muscle during weight loss. While Genentech plans to share detailed trial data later, the failure underscores challenges in targeting muscle preservation, a key focus in the competitive race to develop next-generation obesity treatments that avoid muscle loss associated with current therapies.

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