Sanofi Drops Maze Licensing Deal After FTC Challenge

The FTC announced yesterday that it would seek to block Sanofi's proposed exclusive license agreement with Maze Therapeutics, having concluded that the transaction would "eliminate a nascent competitor poised to challenge Sanofi's monopoly in the Pompe disease therapy market."¹ In response, Sanofi announced its intention to terminate the transaction. ² As explained below, the FTC's action here fits squarely into its "killer acquisition" framework and represents a significant shot across the bow for the pharmaceutical industry.

As noted in our Q3 2023 Quarterly Update, the FTC has consistently voiced significant concern over "killer acquisitions,"³ deals in which entrenched pharmaceutical companies buy assets allegedly for the purpose of eliminating future competition. In several transactions, FTC staff explored the factual issues relevant for such a "killer acquisition" theory even as the assets at issue were very early-stage/high-risk, or involved a therapeutic