Sanofi (SNY.US) Terminates E. Coli Vaccine Trial, Incurring ~$250M in Losses

French pharmaceutical giant Sanofi (SNY.US) and its US counterpart Johnson & Johnson (JNJ.US) have ended development of a trial vaccine against a virulent strain of E. coli, a bacterium that causes a deadly blood infection, after the vaccine failed to effectively prevent the disease.

Sanofi said in a statement that the latest decision would result in a $250 million impairment loss in its fourth-quarter 2024 financial results. However, the company said the decision would not have any impact on its financial expectations for the current fiscal year.

The move is a setback for global efforts to prevent E. coli sepsis, as there are currently no effective preventive measures. Sanofi and Janssen said they decided to terminate the important late-stage clinical study after an independent data monitoring committee reviewed the data and determined that the experimental vaccine did not effectively protect participants compared to the placebo group.

E. coli sepsis is a systemic infection caused by E. coli bacteria that spreads through the bloodstream to various organs, leading to organ dysfunction and potentially life-threatening complications. Currently, there is no specific vaccine available for E. coli sepsis.

Sanofi and Janssen's Janssen unit entered into a collaboration in October 2023 to co-develop the new vaccine product. Sanofi paid $250 million as part of the agreement and was expected to make further payments based on commercial milestones in the future.