BY Richard Summerfield
French drugmaker Sanofi has agreed to acquire biotech firm Synthorx in an all cash deal worth $2.5bn.
Under the terms of the deal, Sanofi will buy the outstanding shares of Synthorx common stock for $68 per share in cash, a 172 percent premium to Synthorx’s closing price on 6 December 2019. Sanofi expects to complete the acquisition in the first quarter of 2020.
The deal will strengthen Sanofi’s position in the increasingly lucrative and competitive oncology market. Synthorx specialises in treatments prolonging and improving the lives of cancer patients or those with auto-immune disorders. The company is developing immuno-oncology therapies which aim to mobilise the body’s immune system to fight cancer cells.
“This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation,” said Paul Hudson, chief executive at Sanofi. “Additionally, it is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations.”
“Synthorx’s exceptionally novel discovery platform has already produced a molecule that has the potential to become a foundation of the next generation of immuno-oncology combination therapies,” said John Reed, global head of research & development at Sanofi. “By selectively expanding the numbers of effector T-cells and natural killer cells in the body, THOR-707 can be combined with our current oncology medicines and our emerging pipeline of immuno-modulatory agents for treating cancer. Moreover, Synthorx’s pipeline of engineered lymphokines has great promise not only for oncology but also for addressing many autoimmune and inflammatory diseases.”
“We are grateful that Sanofi has acknowledged the value of our Expanded Genetic Alphabet platform and the potential of our pipeline of optimised therapeutics for cancer and autoimmune disorders,” said Laura Shawver, president and chief executive at Synthorx. “Importantly, Sanofi has a portfolio of therapeutics that holds incredible promise for combining with our cytokine Synthorins to benefit patients around the world. I want to thank our employees and the Sanofi organization for their relentless efforts on behalf of patients.”
News: France’s Sanofi to buy biotech firm Synthorx for $2.5 billion