Sanofi Elevates Rare Disease Portfolio $2.2B Inhibrx Deal Unveiled

24 Jan, 2024

Sanofi Elevates Rare Disease Portfolio $2.2B Inhibrx Deal Unveiled

French healthcare giant Sanofi is set to acquire U.S. biotech company Inhibrx in a strategic deal valued at up to $2.2 billion. This move aims to enhance Sanofi's drug development portfolio by incorporating Inhibrx's experimental treatment, INBRX-101, which is currently undergoing phase two of clinical trials. INBRX-101 targets Alpha-1 Antitrypsin Deficiency (AATD), a rare genetic disease causing progressive lung tissue deterioration.

As part of the agreement, Sanofi will retain an 8% stake in the spun-off company, housing Inhibrx's other experimental drugs. This strategic acquisition aligns with Sanofi's commitment to advancing research and development, demonstrated by its decision to forego 2025 earnings targets.

Houman Ashrafian, Sanofi's Head of R&D, highlights the significance of adding INBRX-101 to their rare disease portfolio, emphasizing a dedication to differentiated and potentially best-in-class products. In premarket trading, Inhibrx's U.S.-listed shares surged by 6.8% to $35.60. Shareholders are set to receive $30 per share in cash and 0.25 shares in the spun-off entity, with an additional "contingent value right" of $5, subject to the achievement of a regulatory milestone.

The spun-off company, operating under the Inhibrx name, will be led by CEO Mark Lappe. Sanofi will retire Inhibrx's outstanding third-party debts and provide $200 million in cash to fund the spun-off entity. This strategic move mirrors recent trends in the pharmaceutical sector, with companies engaging in significant takeover deals to strengthen their market positions and portfolios