French healthcare company Sanofi has agreed to buy Principia Biopharma Inc, a biopharmaceutical company for $3.7 billion. In a definitive agreement between the two companies, Sanofi will acquire all of the outstanding shares of Principia for $100 per share in cash, representing an aggregate equity value of around $3.68 billion.
This acquisition is expected to further strengthen core Research and development areas of autoimmune and allergic diseases and will enable global resources to get novel therapies to patients faster.
“Full ownership of our brain-penetrant BTK inhibitor ‘168 removes complexities for this priority development program and simplifies future commercialization,” said Paul Hudson, Sanofi Chief Executive Officer.
President and CEO at Principia Biopharma, Martin Babler said, “By combining with Sanofi, we will bring significant resources to expand and accelerate the potential benefits of these therapies,” referring to the whole portfolio of BTK inhibitors aimed at transforming the treatment for patients with immune-mediated diseases.
The acquisition is expected to complete by the fourth quarter of 2020 and is the latest large-scale takeover of rivals by Sanofi. Previously, in 2017, Sanofi had formed a collaboration with Principia which granted Sanofi to develop and commercialize BTK inhibitor ‘168 in multiple sclerosis and other CNS diseases.