France's Sanofi to buy US drugs project INBRX-101 for about $2.2 billion

economictimes.indiatimes.com:

French healthcare company Sanofi has agreed to buy the drug development project INBRX-101 from its parent company Inhibrx Inc for around $2.2 billion in a bid to boost its rare disease business.

The two companies said in a joint statement on Tuesday that Inhibrx shareholders will get $30 per share in cash, one contingent value right (CVR) equal to $5, and 0.25 shares in New Inhibrx, a new publicly traded company that holds the takeover target's assets that are not related to INBRX-101.

Experimental drug INBRX-101, currently in the second of three phases of clinical trials, is designed to treat Alpha-1 Antitrypsin Deficiency (AATD), an inherited rare disease causing progressive deterioration of lung tissue.

Sanofi, which makes most of its revenues from anti-inflammation treatments, last year abandoned 2025 earnings targets to boost research and development (R&D) but CEO Paul Hudson's unexpected strategy shift prompted a 15% drop in the share price.

Following the closing of the deal, New Inhibrx will continue to operate under the «Inhibrx» name and will be led by Mark Lappe as Chairman and CEO.

Sanofi will assume and retire Inhibrx's outstanding third-party debts and fund New Inhibrx with $200 million in cash. Sanofi will also retain an equity interest in New Inhibrx of 8%.

The global pharmaceuticals sector has seen a wave of takeover deals in recent months.

Last October, Bristol-Myers Squibb said it will acquire cancer drugmaker Mirati Therapeutics for up to $5.8 billion, while in March 2023 Sanofi bought Provention Bio Inc for $2.9 billion.