Sanofi announces signing definitive agreement for acquisition of Synthorx, to expand its immuno-oncology pipeline

Paris: Sanofi, a French pharmaceutical giant, is acquiring California based biotechnology firm Synthorx in an all-cash deal worth $ 2.5 billion. According to the deal, Sanofi has offered to buy all the outstanding shares of Synthorx common stock for $ 68 per share in cash. This $ 68 per share acquisition price represents around 172% premium to Synthorx stocks closing price as on December 6, 2019. This acquisition will help Sanofi boost its immune-oncology portfolio.

CEO of Sanofi stated that, “This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation, as you will hear at our Capital Markets Day tomorrow, December 10, 2019. Additionally, it is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations.”

According to TechSci Research, mergers and acquisitions have always been Sanofi’s key growth strategies. Recently, Sanofi traded its Seprafilm surgical barrier business to Baxter International for $350 million setting up a large inflow of cash. This could be a part of the company’s strategic priorities and a lot of mergers and acquisitions can be witnessed in 2020.

Immuno-oncology therapies aim to mobilize the body's immune system to fight cancer cells. Synthorx is a clinical-stage biotechnology company focused on therapies for people with cancer and auto-immune disorders. The company has come out with a way to expand the human genetic code by adding a new DNA base pair boosting the chances of cancer therapies to be more effective. With this acquisition, Sanofi will also start playing a significant role in improving the lives of people suffering from cancer or any other autoimmune diseases. Additionally, this will boost Sanofi’s pipeline of drugs for cancer and other autoimmune diseases. Further, this acquisition will help Sanofi build their oncology portfolio with potentially practice changing medicines and novel combinations.

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