France's Sanofi to buy US group Principia Biopharma for $3.68 billion

PARIS: French pharma giant Sanofi said Monday it will buy US group Principia Biopharma for $3.7 billion in a deal that will boost its research and development into auto-immune and allergic diseases. Sanofi boss Paul Hudson said the deal was an "important step" and would help the company's development of the most promising medical treatments.

The deal, expected to be completed later this year, will see Sanofi "acquire all of the outstanding shares of Principia for $100 per share in cash, which represents an aggregate equity value of approximately $3.68 billion", Sanofi said in a statement.

Sanofi has been cooperating with San Francisco-based Principia since 2017, securing an exclusive global licence to develop and market its BTK'168 drug for treating multiple sclerosis and other central nervous system illnesses. "Full ownership... removes complexities for this priority development programme and simplifies future commercialisation," Hudson said.

Beyond diseases of the nervous system, Principia hopes to develop "a whole portfolio" of similar drugs that could target different organ systems in patients suffering from "immune-mediated" diseases, chief executive Martin Babler said.