Buoyant Sanofi signs Denali deal

Fresh from presenting some of the most encouraging  quarterly results in recent memory, Sanofi (Euronext: SAN) has taken another bet on increasing its future revenues.

The French pharma major is spending $125 million upfront and potentially more than $1 billion in milestone payments on a collaboration with US biotech firm Denali Therapeutics (Nasdaq: DNLI), shares in which opened 9% higher on Thursday.

The collaboration will focus on developing treatments for neurological and inflammatory diseases, with a focus in particular on two lead molecules that target a critical signaling protein known as the receptor-interacting serine/threonine-protein kinase 1 (RIPK1) in the TNF receptor pathway, which regulates inflammation and cell death in tissues throughout the body.