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Sanofi to buy Principia Biopharma for $3.4 billion

pharmafile | August 17, 2020 | News story | Sales and Marketing MS, Sanofi 

Sanofi is set to buy California based Principia Biopharma in a deal that is worth $3.4 billion.

This deal means the French pharmaceutical company will take full control of Principia, which includes its development of treatments for multiple sclerosis and a range of other autoimmune disorders.

Sanofi said that it would pay for the acquisition with cash reserves and would offer $100 per share to Principia’s shareholders. Shares in the company have recently risen by 66% as investors believed their purchase by Sanofi was imminent.

It is set to be the second largest acquisition by a pharmaceutical company this year, following Gilead’s acquisition of Forty Seven for $4.9 billion back in March. Sanofi is attempting to grow its pipeline of BTK inhibitors to rejuvenate the company by focusing on high priced medicines. Principia’s SAR442168 is one of the more promising treatments secured by Sanofi. It was found to benefit MS patients in Phase 2 trials back in February and Sanofi believe it could be worth as much as $20 billion.

This deal is part of Sanofi’s new strategy to pursue acquisitions of companies that make specialty medicines, under its latest CEO Paul Hudson. He said in a statement: “This acquisition advances our ongoing R&D transformation to accelerate development of the most promising medicines that will address significant patient needs.”

Conor Kavanagh

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