French pharmaceutical giant Sanofi announced today that it had reached an agreement to acquire Synthorx in a deal worth $2.5 billion. The deal is going to be conducted entirely in cash and is aimed at strengthening Sanofi’s immuno-oncology capabilities.
It has been revealed that Sanofi is going to pay $68 for each of Synthorx’s outstanding shares. It is a 172% premium on the closing price of the stock as of December 6. In a statement, Sanofi’s CEO Paul Hudson said, “This acquisition… is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations.”
Under the leadership of Hudson, Sanofi is in the process of conduction a broad review of its strategy. It is aimed at identifying the lines of businesses on which Sanofi should be more focused going forward. The company is going to provide an initial update on its review at an investor event on December 10.