Sanofi, the prominent pharmaceutical conglomerate, has undertaken a recent merger and acquisition (M&A) venture. The company has inked an agreement to acquire Inhibrx, a U.S. biotech firm, for a sum of $1.7 billion. However, this acquisition takes a distinctive turn as Sanofi intends to retain only a specific asset, INBRX-101, and spin out the remaining three anticancer molecules into a novel publicly traded biotech entity.
Sanofi has opted to procure Inhibrx for a price beneath the market value, settling at $30 per share, a figure below Inhibrx’s recent closing valuation of $33.33. This reduction aligns with Sanofi’s strategic decision to focus exclusively on INBRX-101, a human recombinant protein currently undergoing a pivotal registration-enabling trial for alpha-1 antitrypsin deficiency (AATD).
The deal structure encompasses the establishment of a new biotech company to house Inhibrx’s three anticancer molecules. This freshly formed entity, retaining the Inhibrx moniker, will commence operations with a commendable $200 million in cash and a debt-free status.
The amalgamation of these components elevates the overall deal value to $2.2 billion. Following the deal’s conclusion, Sanofi will retain an 8% stake in the freshly minted Inhibrx biotech, under the continued leadership of CEO Mark Lappe.
The focal point of this intricate maneuver, INBRX-101, is advancing through a clinical trial meticulously designed to assess its impact on serum functional AAT levels. Tailored to address alpha-1 antitrypsin deficiency, a rare genetic malady causing liver and lung complications, INBRX-101 offers a potential breakthrough by rectifying the deficiency without relying on plasma donations. Inhibrx envisions a substantial expansion of the AATD market with improved diagnosis, projecting a lucrative $4 billion opportunity in the coming years.
This strategic maneuver by Sanofi is not isolated in the pharmaceutical panorama. Recent months have witnessed a surge in merger and acquisition activities within the sector. The decision to selectively acquire assets aligns with Sanofi’s broader commitment to augmenting its drug development portfolio, especially in the realm of rare diseases.
In the broader context of the pharmaceutical industry, this strategic acquisition mirrors a prevailing trend wherein companies are reshaping their portfolios to concentrate on specialized products. Houman Ashrafian, Sanofi’s Head of R&D, highlighted the company’s unwavering dedication to differentiated and potentially best-in-class products, positioning INBRX-101 as a pivotal asset in this pursuit.
