BY Richard Summerfield
In a deal that will expand its rare disease pipeline, French pharmaceutical company Sanofi has agreed to acquire Inhibrx, Inc for $2.2bn.
The transaction will give Sanofi access to Inhibrx’s INBRX-101 – an experimental treatment for a rare genetic disease – which is currently in the second of three phases of clinical trials. Its other experimental drugs will be spun off into a separate company, with Sanofi retaining an 8 percent stake. The spun-off company will operate under the Inhibrx name and be led by current Inhibrx chief executive Mark Lappe, who will become chairman and chief executive.
Sanofi expects to finance the transaction with available cash resources. Subject to the satisfaction of customary closing conditions, Sanofi and Inhibrx expect the transaction to close in the second quarter of 2024.
Under the terms of the deal, Inhibrx shareholders will receive $30 per share, below its $33.33 closing price on Monday 22 January, the day before the deal was announced. Inhibrx shareholders will also gain stakes in the new biotech, plus the chance to receive a further $5 a share if a regulatory milestone is met. As part of the transaction, Sanofi will assume and retire Inhibrx’s outstanding third-party debts, and fund the spun-off company with $200m in cash.
“The addition of INBRX-101 as a high potential asset to our rare disease portfolio reinforces our strategy to commit to differentiated and potential best-in-class products,” said Houman Ashrafian, head of research and development at Sanofi. “With our expertise in rare diseases and growing presence in immune-mediated respiratory conditions, INBRX-101 will complement our approach to deploy R&D efforts in key areas of focus and address the needs of the underserved AATD patients and communities.”
INBRX-101 is designed to treat AATD, a disease that progressively damages the lungs and liver, by reducing inflammation and staving off further damage to the tissue. The size of the AATD market is expected to grow considerably in the coming years, with many other biotech companies, including Mereo BioPharma, Vertex, Wave Life Sciences, BioMarin, Intellia Therapeutics and Peak Bio, all believed to be pursuing AATD therapies.
Sanofi has been particularly active in recent months. In late 2023, the company and artificial intelligence (AI) specialist Aqemia entered a multi-year research collaboration worth $140m to discover small molecule drug candidates across several therapeutic areas. Sanofi also entered into a partnership with BioMap, another AI specialist, to accelerate drug discovery for biotherapeutics, in a deal potentially worth over $1bn. Furthermore, in March 2023 Sanofi acquired Provention Bio for $2.9bn.
News: France's Sanofi to buy U.S. drugs project INBRX-101 for about $2.2 billion