Sanofi to Buy Biotech Company Principia for $3.4 Billion
- Drugmaker focused on multiple sclerosis, related disorders
- Sanofi’s offer marks 10% premium over Principia’s Friday close
Sanofi agreed to acquire U.S. biotech company Principia Biopharma Inc. for about $3.4 billion as the French drugmaker pivots toward innovative therapies to spur growth under new Chief Executive Officer Paul Hudson.
The all-cash deal will see Sanofi taking full control of the company, which focuses on treatments for multiple sclerosis and a range of autoimmune disorders, according to a statement Monday. Bloomberg reported last month that Sanofi was studying potential acquisitions of U.S. biotechnology firms, including Principia.
Sanofi will pay $100 per share, according to the statement, representing a 10% premium over the Friday closing price of Principia’s shares, which have jumped nearly 66% this year. The aggregate equity value of the deal is approximately $3.7 billion, including Principia’s cash, according to Sanofi.