Sanofi’s recent moves show that messenger RNA has been re-prioritized in the company’s strategy, and the pharmaceutical giant is now taking its biggest step to date. $3.2 billion acquisition Translate Bio is its technology research partner.
According to the financial terms announced on Tuesday, Paris-based Sanofi has agreed to pay $38 in cash for each outstanding share of Translate Bio stock that it does not already own. The price is 37% premium to Monday’s closing price and 56% higher than the average stock price over the past 60 days.
Most of the recent focus on Sanofi and Translate Bio has focused on their work to develop an mRNA-based vaccine for Covid-19, which is currently in clinical testing.However, these companies Have been cooperating since 2018. At the beginning of the alliance, the focus was on using Translate Bio’s mRNA platform to develop vaccines for five infectious diseases, with the possibility of expanding the transaction to include other pathogens. Last year’s pandemic provided an opportunity for expansion. In addition to Covid-19, the deal also includes other disease targets, such as influenza. Sanofi paid Translate Bio US$425 million in advance, including a US$125 million equity investment in its partners.
Although Sanofi and Translate Bio lag Moderna and BioNTech in terms of Covid-19 vaccines, the race to develop influenza mRNA vaccines is much closer.Sanofi and Translate Bio started a project Phase 1/2 study The flu shot in June. The monovalent vaccine candidate encodes the hemagglutinin protein of the A/H3N2 influenza strain. Preliminary data is expected at the end of the year. Moderna began research on it in July Seasonal flu tetravalent vaccineBioNTech said that its mRNA influenza vaccine candidate drug being developed in cooperation with Pfizer is expected to begin clinical testing in the third quarter of this year.
In a prepared statement, Sanofi CEO Paul Hudson stated that Translate Bio will help the French company explore the application of mRNA in vaccines and therapies.
“A fully owned platform allows us to develop more opportunities in the rapidly evolving mRNA space,” he said. “We will also be able to accelerate existing collaborative projects that are already in development. In addition to vaccines, our goal is to unlock the potential of mRNA in other strategic areas such as immunology, oncology and rare diseases.”
The Translate Bio acquisition agreement was announced in June at Sanofi Set up a new department to focus on the development of new products based on mRNA technology. Sanofi plans to support its new mRNA division, which has branches in France and the United States, with approximately 400 million euros per year. This department will become a new base for Translate Bio’s research, which is not included in the partnership, such as the biotechnology company’s respiratory program in cystic fibrosis, primary ciliary dyskinesia and pulmonary hypertension, and a Undisclosed liver disease project. Sanofi added cancer to its list of mRNA targets by acquiring Tidal Therapeutics for USD 160 million in April, A company that develops methods to use mRNA to achieve in vivo engineering of patient immune cells to create CAR T immunotherapy.
Sanofi said it will use available cash to fund the Translate Bio transaction. The boards of Sanofi and Translate Bio have approved the transaction, and the two companies expect the transaction to be completed later this quarter. However, if another company makes a better offer, Translate Bio’s board of directors can consider it. But according to Translate Bio, accepting such an offer would put the mRNA company in trouble and pay a $96 million termination fee. Regulatory filing.
Photo: Nathan Laine/Bloomberg via Getty Images
