Sanofi forking out $3.7 billion to buy California biopharma company

Confirming rumors that started in July, French pharma major Sanofi (Euronext: SAN) said today that it will acquire Principia Biopharma (Nasdaq: PRNB), a late-stage, California-based biopharmaceutical company focused on developing treatments for immune-mediated diseases.

Sanofi will acquire all of the outstanding shares of Principia for $100 per share in cash, which represents an aggregate equity value of around $3.68 billion (on a fully diluted basis). This is a 10% premium to Principia’s closing price of $90.74 on Friday, and the news sent the stock up 11.3% to $101.00 pre-market this morning. The Sanofi and Principia boards of directors unanimously approved the transaction.

In 2017, Sanofi formed a collaboration with Principia under which Principia granted Sanofi an exclusive, worldwide license to develop and commercialize BTK inhibitor ‘168 in multiple sclerosis and other central nervous system diseases. Sanofi already has two blockbuster MS drugs of its own, in the form of Aubagio (teriflunomide) and Lemtrada (alemtuzumab).