Adel Licenses Alzheimer's Drug Candidate to Sanofi in Deal Worth Up to $1.04 Billion

Adel, a privately held Korean biotech company, has signed a licensing agreement with French pharmaceutical giant Sanofi for its Alzheimer's disease drug candidate ADEL-Y01, in a deal worth up to 1.53 trillion won ($1.04 billion). The deal signals promising prospects for other Korean companies developing treatments for central nervous system (CNS) disorders, as a major global pharmaceutical company has acquired technology from a domestic biotech firm in the Alzheimer's space.

Adel announced Thursday that it has granted Sanofi exclusive worldwide rights to develop and commercialize ADEL-Y01. The total deal value reaches up to $1.04 billion (approximately 1.53 trillion won), with a non-refundable upfront payment of $80 million (approximately 118 billion won). Adel will receive milestone payments based on development and commercialization progress, with royalties on net sales after commercialization set at up to double-digit percentages.

The upfront payment represents 7.7% of the total deal value, the highest ratio among licensing agreements signed this year. This suggests Sanofi places significant value on Adel's technology. Among licensing deals signed by Korean biotech companies this year where upfront payments were disclosed, the average ratio of upfront payments to total deal value was only 2.2%. Over the past five years, the only licensing agreement with a larger absolute upfront payment was the $100 million deal between Orum Therapeutics and Bristol-Myers Squibb.

ADEL-Y01 is designed to selectively remove acetylated tau (acK280), which causes toxic aggregation, while sparing normal tau protein—a key pathological factor in Alzheimer's disease. By prioritizing the removal of pathological tau while leaving most normal tau intact, the drug is expected to maximally slow the progression of Alzheimer's disease. With a mechanism of action different from existing treatments, the drug is anticipated to create a new market opportunity.

Oscotec, which has a joint research and development agreement with Adel, will receive 47% of the revenue from the ADEL-Y01 licensing deal. Oscotec will first receive $37.6 million (approximately 55.3 billion won) in upfront payments, followed by potential milestone payments tied to clinical trials, regulatory approvals, and commercialization. Since signing a joint R&D agreement with Adel in 2020, Oscotec has collaborated on manufacturing, preclinical studies, and global Phase 1 clinical trials.

"The licensing agreement with Sanofi, a world-class pharmaceutical company, represents global recognition of Adel's technological strengths and ADEL-Y01's potential," said Yoon Seung-yong, CEO of Adel. "We hope to bring hope to Alzheimer's patients worldwide who desperately need fundamental treatments by combining Adel's scientific expertise with Sanofi's drug development and commercialization capabilities."

Industry observers expect more CNS-related licensing deals from Korean biotech companies through next year. Although major pharmaceutical companies including Novo Nordisk and Johnson & Johnson have recently halted Alzheimer's drug development following clinical trial failures, demand continues to grow due to global aging trends. "We should pay attention to licensing deals involving Alzheimer's and CNS therapeutics as well as platform companies next year," said Huh Hye-min, an analyst at Kiwoom Securities, citing ABL Bio's blood-brain barrier (BBB) penetrating platform Grabody-B, along with D&D Pharmatech and First Bio's NLY02 and Alginomics' RZ-003 as promising candidates.