On Monday, Sanofi declared its plans to buy the California-based biotechnology firm, Synthorx, in a cash deal worth about $2.5 billion. The deal is aimed at strengthening the French drug maker’s pipeline of medicines for cancer and auto-immune disorders.
According to the deal, Sanofi has offered to buy all the outstanding shares of Synthorx common stock for $68 per share in cash.
Sanofi S.A. is a French multinational pharmaceutical company headquartered in Paris. It is the world’s fourth-largest pharmaceuticals company by prescription sales. Originally, the company was formed through a merger between Aventis and Sanofi-Synthélabo and was named Sanofi-Aventis in 2004. Both the companies were results of several previous mergers. It was renamed as Sanofi in May 2011. The company is a part of the Euro Stoxx 50 stock market index.
New CEO’s Words
Sanofi Chief Executive, Paul Hudson said in a statement that this acquisition is aligned with their goal to build their oncology franchise with potentially practice-changing medicines and novel combinations.
According to the company’s website, Synthorx is a clinical-stage biotech company that focuses on therapies for people suffering from cancer and auto-immune disorders. Hudson took over as CEO on September 1, 2019. Sanofi is organizing a broad strategy review under its new CEO. He will give initial pointers on which businesses he wants to concentrate on at a capital market’s day in Cambridge, Massachusetts on December 10.
Hudson told reporters in October, “I am bringing a little sense of urgency and prioritization. I have set a tone already that we can move a little bit faster.” Adding to it he said, “I think we have the right level of resources although perhaps not always in the right place.”
Following its new strategy, Sanofi agreed to sell its Seprafilm unit to Baxter International (a medical supply company) for $350 million in cash. According to an internal memo seen by Reuters, Sanofi’s most senior strategy boss, Muzammil Mansuri will retire by the end of the month.
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