Sanofi to Buy U.S. Developer of Multiple Sclerosis Treatment--Update
August 17 2020 - 6:10AM
Dow Jones News
By Peter Stiff
Sanofi SA has agreed to buy Principia Biopharma Inc. in a deal
that values the developer of a promising multiple sclerosis
treatment at $3.68 billion, the health-care giant's latest move to
focus more on specialty therapies over mass-market medicines.
The French company said the purchase would give it full control
over the MS treatment that the two companies were already
codeveloping, simplifying commercialization and eliminating future
royalty payments. The brain-penetrant BTK inhibitor SAR442168
posted upbeat Phase 2 trial data in MS patients earlier this year
and Phase 3 trials started in June.
More broadly, Sanofi said the deal would strengthen its research
and development work in autoimmune and allergic diseases, and allow
it to develop the technology behind the MS drug for use in other
central nervous system diseases and therapeutic areas.
The deal will also hand Sanofi a therapy called rilzabrutinib,
which is currently in Phase 3 trials for patients with pemphigus, a
rare autoimmune disease that causes blistering of the skin.
Under the deal, Sanofi agreed to pay $100 a share for San
Francisco-based Principia, a 10% premium on its closing price
Friday. Principia's shares have risen over 65% so far this year on
speculation of a possible takeover, potentially by Sanofi.
"This acquisition advances our ongoing R & D transformation
to accelerate development of the most promising medicines that will
address significant patient needs," said Sanofi Chief Executive
Paul Hudson.
Mr. Hudson took the helm of Sanofi in September and has since
set out plans to focus the company's research pipeline on the
more-lucrative areas of rare diseases and cancer, pivoting away
from historically strong areas such as the treatment of
cardiovascular disease and diabetes.
Under those plans, Sanofi has said it would stop investing in
diabetes research, while bolstering its oncology business with the
$2.5 billion acquisition of biotech Synthorx Inc.
Analysts expect Sanofi could be in the market for further
acquisitions in specialist disease areas, with the sale of its long
held stake in Regeneron Pharmaceuticals Inc. earlier this year,
giving the company a sizable war chest for bold-on deals.
Write to Peter Stiff at peter.stiff@wsj.com
(END) Dow Jones Newswires
August 17, 2020 05:55 ET (09:55 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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