Sanofi said Monday that it is acquiring Principia Biopharma for $3.68 billion, giving the French drug giant full control over the multiple sclerosis treatment the companies share.
The deal values Principia at $100 per share, a 10% premium over the company’s closing price Friday, but represents a 35% premium to the price of Principia stock on July 15. Bloomberg News reported on July 16 that Sanofi was considering making acquisitions, with Principia as a likely target. The deal has been approved by the boards of both companies, Sanofi said.
The key asset in the deal is a drug called SAR442168, a type of medicine known as a Bruton’s kinase inhibitor, or BTK inhibitor. Other BTK inhibitors are used to treat cancer, but not MS, a neurodegenerative disease in which the immune system damages the central nervous system. Sanofi has said that SAR 442168 could become a big seller, potentially generating billions of dollars annually.