CAC 40-listed Sanofi S.A. (FR:SAN) announced a deal with the U.S.-based Inhibrx, Inc. (NASDAQ:INBX), which will expand its presence in the rare diseases market. The acquisition, valued at $2.2 billion, will provide Sanofi control over the development project INBRX-101, which could be a potential treatment for Alpha-1 Antitrypsin Deficiency (AATD) in patients. AATD is an inherited disorder that may cause lung and liver disease.
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Sanofi shares were trading down by over 2% at the time of writing.
Based in France, Sanofi is a global pharmaceutical company that provides a wide range of medicines and vaccines.
Insights Into the Deal
As part of this agreement, Inhibrx shareholders will receive $30 per share in cash, one contingent value right (CVR) valued at $5, and 0.25 shares in New Inhibrx, a newly established publicly traded company that will be formed after the spin-off of non-INBRX-101 assets from the old company. INBRX-101 has completed a Phase 1 trial and is currently in a Phase 2 clinical trial to assess its potential as a treatment for AATD.
The deal is expected to be completed in the second quarter. After the completion of the transaction, New Inhibrx will retain the Inhibrx name and be headed by Mark Lappe, who will serve as the Chairman and CEO.
The acquisition is part of Sanofi’s strategy to acquire promising assets in the fields of cancer, gene therapy, and rare diseases, aligning with the increased activity in the biotech sector. Additionally, the company aims to increase its investment in its portfolio of innovative medicines and reduce its dependency on the blockbuster asthma medicine Dupixent.
What is the Stock Price Forecast for Sanofi?
As per TipRanks, SAN stock has received a Moderate Buy consensus rating, backed by nine Buys, four Holds, and one Sell recommendation. The average Sanofi share price target is €99.80, which is 7.5% above the current trading levels.
