Sanofi S.A. has agreed to buy U.S.-based biotech group Principia Biopharma Inc. for around $3.34 billion, the companies said Monday.
The deal increases Sanofi's research and development capacity in segments like allergy and autoimmune diseases, the company said. Sanofi will buy Principia's outstanding shares at $100 each in cash - or a 10 percent premium to its Aug. 14 closing price.
The buyout will expand Sanofi's development of the most critical treatments and address the health requirements of patients, chief executive Paul Hudson said.
Talk that Sanofi would buy California-based Principia began in July. Principia and Sanofi's board of directors has approved the deal which is expected to be finalized in the fourth quarter, the companies said.
In 2017 Sanofi won Principia's worldwide license to develop and market its BTK inhibitor-168 that treats sclerosis and some nervous system diseases.
Hudson said the addition of BTK inhibitors to their pipeline illustrated the company's determination to enhance its therapeutic product acquisitions. Sanofi has already developed its own multiple sclerosis drugs - Lemtrada (alemtuzumab) and Aubagio (teriflunomide).
U.S. multinational investment bank and financial services company Jefferies Group LLC said it liked the reasonably reduced-risk "value accretion" of the Principia-Sanofi deal. Jefferies maintained a 'buy' rating for Sanofi.
The deal will provide a tremendous amount of resources to fast-track the development and production of Principia's new treatments, its chief executive Martin Babler said.
Sanofi paid $11.6 billion for Bioverativ Inc. and $2.5 billion for Synthorx, both of the U.S., late last year.
