Updated January 23rd, 2024 at 17:12 IST
France's Sanofi boosts rare disease business with about $2.2 bln Inhibrx deal
Inhibrx shareholders are set to receive $30 per share in cash, along with one contingent value right valued at $5.
Sanofi acquisition deal: French healthcare company Sanofi has entered into an agreement to purchase the drug development project INBRX-101 from its parent company Inhibrx Inc for approximately $2.2 billion, aiming to strengthen its presence in the rare disease sector.
In a joint statement issued on Tuesday, both companies outlined the terms of the deal. Inhibrx shareholders are set to receive $30 per share in cash, along with one contingent value right (CVR) valued at $5. Additionally, they will obtain 0.25 shares in New Inhibrx, a newly established publicly traded entity that will hold assets unrelated to INBRX-101.
Clinical trails pending
The INBRX-101 experimental drug, currently in the second phase of clinical trials, is designed to address Alpha-1 Antitrypsin Deficiency (AATD), an inherited rare disease leading to the progressive deterioration of lung tissue.
Sanofi, primarily recognised for its anti-inflammation treatments, took a strategic turn last year by abandoning its 2025 earnings targets to focus on enhancing research and development (R&D). This unexpected shift by CEO Paul Hudson triggered a 15 per cent decline in the company's share price.
Debts to retire
Upon the deal's completion, New Inhibrx will retain the "Inhibrx" name and be led by Mark Lappe as Chairman and CEO. Sanofi will undertake and retire Inhibrx's outstanding third-party debts, injecting $200 million in cash into New Inhibrx. Furthermore, Sanofi will maintain an 8 per cent equity interest in New Inhibrx.
The pharmaceutical sector has witnessed a flurry of takeover deals in recent months. In October, Bristol-Myers Squibb announced its acquisition of cancer drugmaker Mirati Therapeutics for up to $5.8 billion. In March 2023, Sanofi also acquired Provention Bio Inc for $2.9 billion.
(with reuters inputs)
Published January 23rd, 2024 at 17:12 IST