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Is Sanofi’s $632M AI Bet on Formation Bio the Next Big Immunology Breakthrough?

French pharma giant doubles down on AI-native R&D with gusacitinib licensing deal targeting new inflammatory indication

Key Takeaways

  • Sanofi signs €545M (~$632M) AI-powered licensing deal with Formation Bio for dual JAK/SYK inhibitor
  • Gusacitinib to enter Phase I trials under Sanofi for a new, undisclosed immunology indication
  • Continues Sanofi’s deep AI push following collaborations with OpenAI, Earendil Labs, and BioMed X

AI-Native Discovery at the Forefront of Pharma’s Future
Sanofi’s latest licensing agreement with Formation Bio highlights a clear signal: AI-native pipelines are becoming core to pharma’s innovation engine. The deal centers around gusacitinib, a dual JAK/SYK inhibitor originally acquired from Asana BioSciences by Formation and now being advanced through its AI-integrated platform. While the molecule is in Phase III for chronic hand eczema, Sanofi aims to expand its utility by initiating a new Phase I trial in an undisclosed immunology setting—showcasing AI’s ability to repurpose and accelerate assets through predictive target alignment.

Formation Bio: Building AI-Driven Development Engines
Previously known as TrialSpark, Formation Bio brings software-first clinical development capabilities to the biotech space. Its subsidiary, Libertas Bio, is leading the gusacitinib program, integrating AI from candidate optimization through trial operations. With this new deal, Formation unlocks milestone payments and low-to-mid teen royalties while allowing Sanofi to bring its global development power into unexplored immunology territories—validating Formation’s full-stack, AI-forward business model.

Sanofi’s Expanding AI Arsenal in Drug Discovery
This move follows a multi-front AI strategy by Sanofi. In 2022, it launched its Toronto-based AI Center of Excellence and initiated a partnership with BioMed X for predictive candidate efficacy modeling. More recently, it invested over $1.8B in Earendil Labs for AI-driven biologics and partnered with OpenAI to build proprietary software tools for discovery and development acceleration. Sanofi’s tech-centric R&D model now includes both biologics and small molecule domains, reinforcing its commitment to AI-first development infrastructure.

Implications for Industry and Investors
With AI-native companies like Formation gaining validation from top-10 pharmas, the line between software and biology is increasingly blurred. Sanofi’s model—combining internal capability building with external AI-biotech alliances—represents a roadmap for modern drug R&D. Investors should note the emphasis on platform scalability, real-world validation, and royalty-linked models that de-risk early-stage innovation. The gusacitinib deal may also hint at an emerging trend of AI-enabled indication expansion, using data to guide smarter asset development.


About Sanofi
Sanofi is a global healthcare leader focused on advancing therapies in immunology, oncology, vaccines, and rare diseases. Committed to transforming medicine through data and digital innovation, Sanofi continues to invest in AI-first partnerships and internal capabilities to accelerate drug discovery and patient impact.

About Formation Bio
Formation Bio, formerly known as TrialSpark, is an AI-native biotechnology company reimagining drug development by combining data science, machine learning, and technology platforms with end-to-end clinical development capabilities. With a focus on accelerating R&D timelines and expanding access to innovative therapies, Formation Bio acquires, develops, and advances clinical-stage assets using its proprietary tech-enabled infrastructure. The company partners with leading pharmaceutical and biotech firms, offering a scalable model to bring more treatments to patients, faster and more efficiently.

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