Sanofi to buy biotech firm Inhibrx in $2.2bn deal to boost rare disease business
French healthcare company says the deal brings it an experimental treatment for rare genetic disease
23 January 2024 - 16:22
by Sudip Kar-Gupta, Ludwig Burger and Sneha SK
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Paris/Frankfurt/Bengaluru — French healthcare company Sanofi has agreed to buy US biotech firm Inhibrx in a deal valued at up to $2.2bn, bolstering its drug development portfolio with an experimental treatment for a rare genetic disease.
The companies said the deal will give Sanofi access to Inhibrx’s INBRX-101, now in the second of three phases of clinical trials, while its other experimental drugs will be spun off into a separate company, with Sanofi retaining an 8% stake.
INBRX-101 is designed to treat alpha-1 antitrypsin deficiency (AATD), an inherited rare disease that causes progressive deterioration of the lung tissue.
Sanofi, which makes most of its revenues from anti-inflammation treatments, last year abandoned 2025 earnings targets to boost the company’s research & development (R&D).
“The addition of INBRX-101 as a high potential asset to our rare disease portfolio reinforces our strategy to commit to differentiated and potential best-in-class products,” said Houman Ashrafian, Sanofi’s head of R&D.
US-listed shares of Inhibrx rose 6.8% to $35.60 in premarket trading on the deal that will give shareholders $30 per share in cash, which represents an equity value of $1.7bn, as well as 0.25 shares in the spun-off company.
Inhibrx shareholders will also receive a “contingent value right” equal to $5, conditioned on the achievement of a regulatory milestone.
The spun-off company will operate under the Inhibrx name and will be led by Inhibrx chief Mark Lappe as CEO.
Sanofi will assume and retire Inhibrx’s outstanding third-party debts, and fund the spun-off company with $200m in cash.
The global pharmaceuticals sector has seen a wave of takeover deals in recent months.
Bristol-Myers Squibb said in October last year it will acquire cancer drugmaker Mirati Therapeutics for up to $5.8bn, while in March Sanofi bought Provention Bio for $2.9bn.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sanofi to buy biotech firm Inhibrx in $2.2bn deal to boost rare disease business
French healthcare company says the deal brings it an experimental treatment for rare genetic disease
Paris/Frankfurt/Bengaluru — French healthcare company Sanofi has agreed to buy US biotech firm Inhibrx in a deal valued at up to $2.2bn, bolstering its drug development portfolio with an experimental treatment for a rare genetic disease.
The companies said the deal will give Sanofi access to Inhibrx’s INBRX-101, now in the second of three phases of clinical trials, while its other experimental drugs will be spun off into a separate company, with Sanofi retaining an 8% stake.
INBRX-101 is designed to treat alpha-1 antitrypsin deficiency (AATD), an inherited rare disease that causes progressive deterioration of the lung tissue.
Sanofi, which makes most of its revenues from anti-inflammation treatments, last year abandoned 2025 earnings targets to boost the company’s research & development (R&D).
“The addition of INBRX-101 as a high potential asset to our rare disease portfolio reinforces our strategy to commit to differentiated and potential best-in-class products,” said Houman Ashrafian, Sanofi’s head of R&D.
US-listed shares of Inhibrx rose 6.8% to $35.60 in premarket trading on the deal that will give shareholders $30 per share in cash, which represents an equity value of $1.7bn, as well as 0.25 shares in the spun-off company.
Inhibrx shareholders will also receive a “contingent value right” equal to $5, conditioned on the achievement of a regulatory milestone.
The spun-off company will operate under the Inhibrx name and will be led by Inhibrx chief Mark Lappe as CEO.
Sanofi will assume and retire Inhibrx’s outstanding third-party debts, and fund the spun-off company with $200m in cash.
The global pharmaceuticals sector has seen a wave of takeover deals in recent months.
Bristol-Myers Squibb said in October last year it will acquire cancer drugmaker Mirati Therapeutics for up to $5.8bn, while in March Sanofi bought Provention Bio for $2.9bn.
Reuters
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