(AOF) – Sanofi (-1.60% to 92.60 euros) announced the acquisition of INBRX-101, the main asset of Inhibrx, a biotech at the clinical stage specializing in rare diseases. This transaction, estimated at $2.2 billion, “completes 30 years of know-how in the sphere of rare diseases”, underlined the pharmaceutical laboratory. JPMorgan welcomes a “good strategic choice” for rare diseases and expected an increase in the title: the broker mentions a market potential of “up to 1 billion dollars” for INBRX-101 currently and around 4 billion to term, according to Inhibrx.
Sanofi only acquires the company’s main asset, NBRX-101, a human recombinant protein indicated against alpha-1-antitrypsin deficiency, a rare hereditary disease. While this disease primarily affects the lungs and results in progressive tissue deterioration, INBRX-101 could help reduce inflammation and prevent deterioration of respiratory function.
The details of the transaction
Under the terms of the merger agreement, Sanofi will acquire all of the outstanding shares of Inhibrx at a price of $30 per share, representing $1.7 billion paid in cash.
For each Inhibrx share, Inhibrx shareholders will also receive a $5 contingent value right contingent upon the achievement of regulatory milestones. This additional cash consideration could represent approximately $296 million.
Shareholders will also receive 0.25 shares of a new publicly traded company that will retain Inhibrx’s non-INBRX-101 assets, particularly those in its immuno-oncology development portfolio.
Finally, “New Inhibrx” will be capitalized by a contribution of $200 million in cash for distribution, and Sanofi will retain an 8% stake in the new company.
Finalization in the second quarter
Sanofi’s acquisition of Inhibrx remains subject to the spin-off transaction resulting in the creation of New Inhibrx and other customary closing conditions, including regulatory approvals and the approval of Inhibrx shareholders. The two companies plan to close the transaction during the second quarter of 2024. Sanofi specifies that it plans to finance this transaction by drawing on its available cash.
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