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Bloomberg
French pharma giant Sanofi agreed to buy US biotech company Synthorx Inc for $2.5 billion, almost triple its market value, accelerating a push into cancer under new Chief Executive Officer Paul Hudson.
Sanofi will pay $68 a share in cash for Synthorx, the companies said. Shares of the unprofitable San Diego-based company closed at $25.03, having surged 40%.
The deal underscores the Paris-based drugmaker’s efforts to build its portfolio of innovative therapies in the fast-growing and lucrative cancer field.
It was unveiled a day before Hudson outlines his pipeline and acquisition priorities, along with his initial plans for the consumer-health, diabetes and other units. The purchase marks Sanofi’s first multibillion acquisition since early 2018.
Investors are counting on Hudson to fire up Sanofi’s research operations and step up the search for novel products to reduce its reliance on Dupixent, a standout medicine for severe eczema and asthma. Hudson, the former pharma head at Novartis AG, is credited with launching key medicines at his previous job before becoming CEO of Sanofi in September.
The purchase is the latest sign of big pharma’s increasing bet on oncology medicines with drugmakers including Roche Holding AG, Bristol-Myers Squibb Co and Merck & Co leading the pack.