France's Sanofi to buy US firm Principia Biopharma for $3.7bn

French healthcare company Sanofi SA has agreed to buy US company Principia Biopharma Inc for around 3.7 billion US dollars, the companies said on Monday, strengthening Sanofi's presence in research and development (R&D) areas.

Sanofi will buy the outstanding shares of Principia for $100 per share in cash, according to the joint statement, representing an aggregate equity value of around $3.68 billion on a fully diluted basis and a premium of 10% to Principia Biopharma's stock closing of $90.74 on August 14.

Sanofi said the acquisition of Principia Biopharma, which develops therapies for serious immune diseases, would strengthen its research capabilities in areas such as autoimmune and allergic diseases.

"This acquisition advances our ongoing R&D transformation to accelerate the development of the most promising medicines that will address significant patient needs," said Sanofi Chief Executive Officer Paul Hudson.

Sanofi said it expected to complete the acquisition of Principia Biopharma in the fourth quarter of 2020.

"The merger will provide global resources to get these novel therapies to patients faster," said Martin Babler, president and chief executive officer at Principia Biopharma.

The acquisition of Principia Biopharma marks the latest large-scale takeover of rivals by Sanofi, following Sanofi's 2018 takeover of US haemophilia treatment specialist Bioverativ for $11.6 billion, and its purchase of biotechnology company Synthorx in December 2019 for around $2.5 billion.

(Source: US News)