France’s Sanofi to buy US group Principia Biopharma for $3.68 billion

French pharma giant Sanofi said Monday, August 17, it will buy US group Principia Biopharma for $3.7 billion in a deal that will boost its research and development into auto-immune and allergic diseases.

Sanofi boss Paul Hudson said the deal was an “important step” and would help the company’s development of the most promising medical treatments.

The deal, expected to be completed later this year, will see Sanofi “acquire all of the outstanding shares of Principia for $100 per share in cash, which represents an aggregate equity value of approximately $3.68 billion,” Sanofi said in a statement.

Sanofi has been cooperating with San Francisco-based Principia since 2017, securing an exclusive global license to develop and market its BTK’168 drug for treating multiple sclerosis and other central nervous system illnesses. 

“Full ownership…removes complexities for this priority development program and simplifies future commercialization,” Hudson said.

Beyond diseases of the nervous system, Principia hopes to develop “a whole portfolio” of similar drugs that could target different organ systems in patients suffering from “immune-mediated” diseases, chief executive Martin Babler said.

Principia Biopharma specializes in the development of treatments to control and reduce inflammation caused by auto-immune diseases — where the body’s own defenses attack healthy tissues.

BTK’168 is currently in Phase III clinical trials, the last stage before the company can apply for approval for its use.

Principia Biopharma is also developing other treatments, notably rilzabrutinib for pemphigus, a rare and painful chronic condition causing blisters and sores, which is also in Phase III trials.

Sanofi R&D head Dr. John Reed said both compounds had the potential to be used in multiple treatments.

Earlier this year, Sanofi acquired another US biotech company, Synthorx, a specialist in cancer treatments, for $2.5 billion.

Shortly after, it sold its holding in US biotech Regeneron for some $12 billion.

Sanofi is separately involved in efforts to develop a coronavirus vaccine and appears to be among the frontrunners to produce one. – Rappler.com