(Bloomberg) – Sanofi plans to acquire Principia Biopharma Inc, headquartered in San Francisco, Calif., Valued at $ 3.4 billion as the French drugmaker focuses on innovative therapies to drive growth controlling the American company, which focuses on treatments for multiple sclerosis and a range of autoimmune diseases, the company said in a statement Monday. Bloomberg reported last month that Sanofi is investigating possible acquisitions by US biotechnology companies, including Principia.
According to a statement, Sanofi pays $ 100 per share, a 10% premium over Friday’s closing price for Principia shares, which are up nearly 66% this year. The total net asset value of the deal is reportedly around $ 3.68 billion.
The deal marks the second largest pharmaceutical acquisition this year after Gilead Sciences Inc agreed to pay $ 4.9 billion in March to purchase cancer therapy maker Forty Seven Inc., and will give Sanofi a pipeline of drugs, known as BTK inhibitors, which are being developed to treat autoimmune diseases. Paul Hudson, Sanofi’s chief executive officer, seeks to rejuvenate the Paris-based company by focusing on fast-growing areas where new drugs are fetching high prices.
With this deal, Sanofi will secure drugs such as the BTK inhibitor SAR442168 against multiple sclerosis and other diseases of the central nervous system. Patients with multiple sclerosis were found to benefit from Phase 2 trials in February, leading Hudson to say the treatment could make up half of the $ 20 billion market for therapies for the terminal disease .
Principia is developing a therapy called rilzabrutinib to treat disorders of the immune system, according to its website, and is evaluating the drug’s use in patients with pemphigus, a group of rare diseases that cause blisters on the skin and mucous membranes.
Sanofi could spend up to $ 50 billion on acquisitions after announcing the sale of its stake in Regeneron Pharmaceuticals Inc., Bloomberg Intelligence announced in May. In addition to cancer and gene therapy technologies, its targets could include immunological assets, analysts at Bank of America Corp. wrote. at this time.
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