Sanofi Purchases US Drugmaker Principia Biopharma For $3.7 BillionPublished on: August 21, 2020
Categorized in: News
One of the best news to spring out in recent times is the acquisition of the Principia Biopharma by the French Drugmaker Sanofi. This news means the Sanofi store is making wave progress, according to Wall Street. The Sanofi store purchased the Principia Biopharma Inc for a whopping $3.7 billion.
The purchase was disclosed by the two companies involved on Monday makes it possible for the French drugmaker Principia a forward tilt in autoimmune diseases. Drugs that will be rolled out due to this significant development will include drugs targeting painful skin conditions, multiple sclerosis, and pemphigus. Sanofi and Principia biopharma have both been in partnership since 2017, which makes it a breakthrough for the companies.
The CEO of Sanofi Paul Hudson claimed that the purchase would go a long way in strengthening his company’s investment in the development of pharmaceuticals and research. According to him, “This acquisition advances our ongoing R&D transformation to accelerate the development of the most promising medicines that will address significant patient needs.”
What this deal spells for Sanofi is that it will now have access to some class of drugs called BTK inhibitors, a drug that prevents B-cells from fighting against healthy tissues. Unlike before, Sanofi will no longer be required to pay royalties to Principia Biopharma Inc. Also, any form of medicines developed while using the Principia’s BTK inhibitors will no longer call for fees.
Hudson, who was clearly elated, also stated that “The addition of multiple BTK inhibitors to our pipeline demonstrates our commitment to strategic product acquisitions in our priority therapeutic areas.” He also further reiterated that the purchase was a promising one in terms of treating autoimmune diseases and developing new products.
The acquisition of the US-based Principia biopharma was also lauded by UBS analyst Laura Sutcliffe on Monday, saying “seems to make strategic sense.” While J.P Morgan Cazenove analyst Richard Vosser also praised the acquisition by saying it “makes strategic sense.”
One of the benefits of this purchase, according to Martin Babler, the CEO of Principia Biopharma, is that it will give provision for global resources, which will help novel therapies get to patients faster. Also, this purchase is regarded as the second biggest pharmaceutical acquisition in 2020, according to Bloomberg News. This purchase is also the second for Sanofi in terms of recent significant investments. Sanofi once announced in December that they would be buying Synthorx Inc. for $2.5 billion.
The purchase of Principia’s Biopharma has also transferred the right to own the rilzabrutinib drug, which helps in treating pemphigus and plenty of other potential autoimmune diseases to Sanofi.
Another great news to come from Sanofi is the development of its own COVID-19 vaccine through the Sanofi Pasteur, which is the vaccine division of the company. However, they are in partnership with GlaxoSmithKline to develop these vaccines. However, the progress of the vaccine development is still in its pre-clinical phase; this is according to the statement released by the World Health Organization.