Sanofi To Purchase Immune System-Focused Drugmaker Principia Biopharma For $3.7B

Sanofi SA SNY will acquire Principia Biopharma Inc PRNB for $3.68 billion in cash, the two companies announced Monday.

What Happened

Under the agreement, the French drugmaker will purchase all of Principia’s outstanding shares at $100 each, in cash. The boards of the two companies have given their approval for the transaction, the drugmakers said.

The two companies have been cooperating on autoimmune diseases, specifically, a multiple sclerosis treatment termed "BTK inhibitor ‘168," since 2017.

“Full ownership of our brain-penetrant BTK inhibitor '168 removes complexities for this priority development program and simplifies future commercialization,” Sanofi CEO Paul Hudson said in a statement.

The Paris-based drugmaker expects to close the deal by the end of this year.

Why It Matters

Sanofi's acquisition of Principia Biopharma would allow the latter to leverage BTK inhibitors for targeting specific organs, according to the San Francisco-based company’s CEO Martin Babler.

In late July, Sanofi SA reached an agreement with GlaxoSmithKline plc GSK to supply the United Kingdom with 60 million doses of their jointly-developed COVID-19 vaccine. The companies expect a regulatory approval for the vaccine candidate in the first half of 2021, pending positive clinical data. 

Separately, Sanofi is also collaborating with Translate Bio, Inc TBIO for the development of an RNA vaccine candidate. 

Price Action 

Sanofi shares closed nearly 2% lower at $50.33 on Friday and gained almost 0.2% in the after-hours. Principia shares closed almost 1.1% lower at $90.74 the same day.

Photo courtesy: Sanofi SA via Flickr

Posted In: BiotechM&AHealth CareGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.