Sanofi has agreed to buy cancer biotech company Synthorx for $2.5 billion, the first big move by new Chief Executive Paul Hudson to reinvigorate the sprawling French health-care giant.
The company has a long history in cancer-drug development but has fallen behind in the latest rush to develop immunotherapies, or drugs that help the immune system fight tumors. Its acquisition of Synthorx is a bet that it can make up that ground.
Synthorx, based in La Jolla, Calif., is developing a drug that aims to boost the immune system’s response to cancer. The drug is in the early phase of human testing in a range of cancers, both on its own and in combination with existing cancer immunotherapies. Sanofi on Monday said it would pay $68 a share in cash for Synthorx, a 172% premium to the smaller company’s closing share price Friday.
“This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation,” said Mr. Hudson, who is set to provide an eagerly awaited strategy update to investors Tuesday.
Full Content: Wall Street Journal
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