According to data collected by Oita Chuo Pacific Management, the all-cash-deal will see Sanofi take full ownership of the company, which focuses on therapies for multiple sclerosis and a host of autoimmune conditions.
"Sanofi has agreed to pay $100 per share, which represents a 10% premium over Principia's closing price on Friday, which this year climbed almost 66%. The cumulative equity value of the deal is estimated at $3.7 billion," commented Head of Wealth Management at Oita Chuo Pacific Management, Jonathan Marshall. "Shares in Sanofi were up 0.5% early Monday in Paris," he added.
The acquisition is this year's second-largest pharmaceutical deal following Gilead Sciences Inc agreeing to purchase cancer therapy maker Forty Seven Inc. for $4.9 billion in March, and will provide Sanofi with a pipeline of drugs known as BTK inhibitors which are produced to treat autoimmune conditions. Hudson is aiming to reshape the Paris-based company by focusing on rapidly-expanding areas with which innovative medicines are commanding higher prices.
The move follows the pharmaceutical giants promise in December to purchase Synthorx Inc. for $2.5 billion. Hudson revealed a new strategy for the company late last year, announcing it would conclude its search for new diabetes and heart disease medicines, helping save over $2 billion, and concentrate on innovation-ready areas such as cancer.
With this deal, Sanofi will secure drugs, including the BTK inhibitor SAR442168 for multiple sclerosis and other diseases of the central nervous system. In February, patients with multiple sclerosis were found to have benefited in Phase 2 trials, which led Hudson to say the therapy could target half of the $20 billion market for incurable disease therapies.
Headquartered in San Francisco, Principia is producing a therapy called Rilzabrutinib for the treatment of immune-system conditions and is evaluating the use of the medicine in patients with pemphigus, a group of rare diseases that cause skin and mucous membrane blistering.
"Through this acquisition, Sanofi will be able to grow and intensify the development of BTK inhibitors across multiple indications. Principia is a perfect match for Sanofi," commented Michael Knight, Head of Corporate Equities at Oita Chuo Pacific Management.
After announcing the disposal of its stake in Regeneron Pharmaceuticals Inc., Sanofi could potentially spend up to $50 billion on further acquisitions, including targeted cancer and gene therapy technologies.
About Oita Chuo Pacific Management
Oita Chuo Pacific Management is a recognized leader in wealth management advisory with offices located in the heart of Tokyo, Japan. Oita Chuo Pacific Management's mission is to be the most trusted partner for our clients, and continue to be a globally recognized wealth management company in years to come.