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news.French drugmaker Sanofi has agreed to acquire late-stage biopharmaceutical company Principia Biopharma for an aggregate equity value of around $3.68bn.
Sanofi has agreed to acquire Principia Biopharma. (Credit: Adam Radosavljevic from Pixabay)
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As per terms of the deal, Sanofi will purchase all of the outstanding shares of Principia by paying $100 per share in cash.
Principia Biopharma is engaged in the development of advanced treatments for the treatment of immune-mediated diseases.
Principia Biopharma president and CEO Martin Babler said: “Principia’s successful design and development of a whole portfolio of BTK inhibitors for immunology is aimed to transform the treatment for patients with immune-mediated diseases.
“By combining with Sanofi, we will bring significant resources to expand and accelerate the potential benefits of these therapies.”
Principia’s Bruton tyrosine kinase (BTK) inhibitors will help Sanofi to boost and develop next-generation treatments for autoimmune diseases.
The company’s rilzabrutinib is an oral BTK inhibitor, which is presently being assessed in a phase 3 programme for patients with moderate to severe pemphigus, a disease that results in the blistering of the skin and mucous membranes.
A phase 3 programme for immune thrombocytopenia, a disease that results in the high-risk bleeding event, is expected to be commenced by the end of this year.
The firm has an ongoing phase 2 programme for IgG4-related diseases, which is directed by chronic inflammation, immune cell infiltration, and fibrosis within organs that may cause severe morbidity.
The company’s BTK inhibitor is a topical agent currently in phase 1trials. It is being developed to treat immune-mediated diseases.
In 2017, Sanofi secured an exclusive and worldwide licence from Principia to develop and commercialise BTK inhibitor ‘168 in multiple sclerosis and other central nervous system diseases.
Sanofi CEO Paul Hudson said: “This acquisition advances our ongoing R&D transformation to accelerate the development of the most promising medicines that will address significant patient needs.”
Subject to the satisfaction or waiver of customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.
On the transaction, Evercore is serving as financial advisor to Sanofi and Weil while Gotshal & Manges is acting as its legal counsel. Centerview Partners and BofA Securities are serving as financial advisors to Principia and Cooley is acting as its legal counsel.
Recently, Sanofi said that it will invest €610m in its home country France to build a new vaccine production site and a new research centre dedicated to vaccines.
