Shares of Vigil Neuroscience (NASDAQ: VIGL) surged more than 240% in midday trading following the announcement that French pharmaceutical giant Sanofi (NASDAQ: SNY) has agreed to acquire the company for up to $470 million. The deal includes a base cash payment of $8.00 per share and a contingent value right (CVR) that could add an additional $2.00 per share if certain milestones are met.
The key driver of the acquisition is VG-3927, Vigil’s promising experimental treatment for Alzheimer’s disease. VG-3927 targets TREM2, a protein found on microglia—the brain’s primary immune cells. By increasing the activity of TREM2, VG-3927 is designed to reduce neuroinflammation, a significant contributor to the progression of Alzheimer’s. TREM2 has been a focal point of neuroscience research in recent years due to its potential to modulate the brain’s immune response and influence neurodegenerative diseases.
Sanofi’s move to acquire Vigil is part of a broader push into neuroscience and immunology. While the deal puts Sanofi deeper into the competitive and high-risk Alzheimer’s research arena, it also reflects growing interest in novel approaches that address neuroinflammation as a key mechanism in the disease.
Under the acquisition terms, Sanofi will pay $8.00 in cash per share, valuing Vigil at approximately $470 million. Additionally, shareholders will receive a non-tradeable CVR that could be worth up to $2.00 per share, payable if VG-3927 achieves its first commercial sale within a specified timeframe. This contingent payment structure allows Sanofi to manage risk while providing upside potential for Vigil investors.
While Vigil stock rocketed upward on the news, Sanofi shares dipped slightly in midday trading, reflecting investor caution around the risks inherent in Alzheimer’s drug development—a notoriously difficult and costly therapeutic area with a high failure rate.
Still, the acquisition underscores confidence in VG-3927’s potential and marks a significant milestone for Vigil Neuroscience, a company that has largely flown under the radar until now. The deal is expected to close later this year, pending regulatory approvals and other customary closing conditions.
If successful, VG-3927 could offer a novel mechanism of action in Alzheimer’s therapy—one that could complement or even outperform current treatment options that largely focus on clearing beta-amyloid plaques from the brain. Sanofi’s bet on microglial modulation represents an evolving strategy in the fight against one of the most devastating neurodegenerative disorders.