PARIS: French pharmaceutical giant Sanofi announced Monday that it would buy US group Principia Biopharma for $ 3.68 billion as part of a deal that will boost its research and development on autoimmune and allergic diseases.
The deal will see Sanofi “acquire all of the outstanding shares of Principia for $ 100 per share in cash, representing a total equity value of approximately $ 3.68 billion,” Sanofi said in a statement.
Sanofi had been cooperating with San Francisco-based Principia since 2017, obtaining an exclusive worldwide license to develop and market its drug for the treatment of multiple sclerosis and other central nervous system diseases known as BTK’168.
“Full ownership… removes the complexities of this priority development agenda and simplifies future commercialization,” said CEO Paul Hudson.
Beyond diseases of the nervous system, Principia hopes to develop “a whole portfolio” of similar drugs that could target different organ systems in patients with “immune-mediated” diseases after the Sanofi merger, said chief executive Martin Babler .
The French company has announced its intention to complete the acquisition between October and December 2020.