07:31 AM EDT, 07/01/2025 (MT Newswires) -- Adagene ( ADAG ) said Tuesday that Sanofi ( SNY ) has agreed to make a strategic investment of up to $25 million in the company.

Adagene ( ADAG ) intends to use the proceeds to fund its research and development activities. The company said it will supply Sanofi ( SNY ) with muzastotug to assess the safety, efficacy, pharmacokinetics and biomarker data in combination with other anticancer therapies in more than 100 patients in a phase 1/2 clinical trial in advanced solid tumors.

Sanofi ( SNY ) has exercised its option to select a third SAFEbody discovery program, using Adagene's ( ADAG ) masking technology and antibody engineering expertise.

Adagene ( ADAG ) said the proceeds from the Sanofi ( SNY ) investment, along with its current cash and cash equivalents, are expected to be enough to fund planned operations into 2027.

Adagene ( ADAG ) shares were up 9.2% in recent premarket activity.