French Drugmaker Sanofi Agrees To Buy Inhibrx's Candidate For Rare Genetic Indication, For About $2.2B
Portfolio Pulse from Vandana Singh
Sanofi SA (NASDAQ:SNY) is set to acquire Inhibrx Inc's (NASDAQ:INBX) INBRX-101, a therapy for alpha-1 antitrypsin deficiency, for approximately $2.2 billion. The deal includes a merger where Sanofi will buy Inhibrx shares at $30 each, plus a contingent value right of $5 per share, and Inhibrx shareholders will receive one share of the new entity, Inhibrx Biosciences Inc, for every four shares held. Sanofi will also assume Inhibrx's debt and invest $200 million in the new company, retaining an 8% equity interest. The transaction is expected to close in Q2 of 2024. Inhibrx shares rose 2.04% to $34.01, while Sanofi shares fell 0.65% to $50.50 in premarket trading.
January 23, 2024 | 1:00 pm
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NEGATIVE IMPACT
Sanofi is acquiring Inhibrx's INBRX-101 for $2.2B, which includes assuming debt and a cash investment in the new Inhibrx Biosciences. Sanofi's shares dipped slightly by 0.65% in premarket trading.
The slight dip in Sanofi's share price could be attributed to market reactions to the cash outflow for the acquisition and the assumption of debt, despite the strategic expansion in their portfolio. The impact is significant due to the size of the transaction but may be mitigated by Sanofi's overall financial strength and the potential long-term benefits of the acquisition.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Inhibrx's shares increased by 2.04% to $34.01 following the announcement of its acquisition by Sanofi for approximately $2.2 billion. Shareholders will receive $30 per share, a contingent value right, and shares in the new Inhibrx Biosciences.
Inhibrx's stock price increase reflects positive investor sentiment towards the acquisition deal, which offers immediate cash value and future potential through contingent value rights and equity in the new company. The relevance and importance are high as the deal directly affects Inhibrx's valuation and future.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100