SNY Sanofi

   By Cecilia Butini 
 

Sanofi SA said Monday that it entered into a definitive agreement for the acquisition of U.S.-based biopharmaceutical company Principia Biopharma Inc. for a total enterprise value of roughly $3.68 billion.

Under the transaction--which was unanimously approved by the board of directors of both companies--Sanofi plans to acquire all of Principia's outstanding shares for $100 a share in cash through a tender offer that should start later this month, the French pharmaceutical company said.

"Following the successful completion of the tender offer, a wholly owned subsidiary of Sanofi will merge with Principia and the outstanding Principia shares not tendered in the tender offer will be converted into the right to receive the same $100 per share in cash paid in the tender offer," Sanofi said.

The deal is expected to close during the fourth quarter of this year, it said.

Principia Biopharma's focus include develping treatments for immune-mediated diseases, Sanofi said.

Sanofi said the acquisition will strengthen research and development in areas such as autoimmune and allergic diseases.

The company said the deal will allow it to fully control the brain-penetrant BTK inhibitor SAR442168, which is used in the treatment of multiple sclerosis and which is currently licensed to Sanofi.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

August 17, 2020 01:51 ET (05:51 GMT)

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