KEY TAKEAWAYS
- Sanofi is buying Inhibrx in a $1.7 billion deal as the French pharmaceutical giant expands its pipeline of drugs that can treat rare diseases.
- The agreement will give Sanofi access to Inhibrx’s INBRX-101, which is designed to treat Alpha-1 Antitrypsin Deficiency or AATD.
- The remaining Inhibrx assets will be spun off into a separate entity, which will retain the Inhibrx brand name.
Inhibrx (INBX) shares jumped over 7% in early trading Tuesday after Sanofi (SNY) said it would buy Inhibrx in a $1.7 billion deal as the French pharmaceutical giant expands its pipeline of drugs to treat rare diseases.
The agreement will give Sanofi access to Inhibrx’s INBRX-101, which is designed to treat a rare disease called Alpha-1 Antitrypsin Deficiency (AATD), which progressively deteriorates the lungs.
Inhibrx’s other experimental drugs will be spun off into a separate company that will be headed by the U.S. firm’s CEO and founder, Mark Lappe. Sanofi will fund the spun-off firm, which will keep the Inhibrx name, with $200 million in cash. The French company will hold an 8% stake in the new firm.
Under the terms of the deal, Sanofi will acquire all outstanding shares of Inhibrx for $30 per share in cash, valuing the U.S. company at around $1.7 billion. Sanofi will also take on Inhibrx’s outstanding third-party debt.
Inhibrx shareholders will get 0.25 shares in the spun-off company and also earn a bonus of $5 per share if the drug meets key regulatory milestones.
The agreement is expected to be completed in the second quarter of 2024 and will be financed with Sanofi’s available cash resources.
American depositary receipts (ADRs) of Sanofi were 1.4% lower at $50.13 per share as of about 11:20 a.m. ET Tuesday following the news. Shares of Inhibrx were 7.6% higher at $35.87.