Innovent Biologics Inc said on Friday Paris-based Sanofi SA would invest HK$2.42 billion in the biopharmaceutical group to jointly develop two cancer drugs in China.
The all-cash investment by Sanofi unit Sanofi Foreign Participations B.V. will be at a price of HK$42.42 per Innovent share, representing a premium of about 29 per cent to the stock's last close. Innovent said it had also entered into a licence agreement with Sanofi Foreign Participations for the commercialisation of the two oncology medicines.
The Jiangsu, China-based company said SAR408701, or tusamitamab ravtansine, would be used to treat lung, gastric and other cancers, while SAR444245, or non-alpha IL-2, was under phase-2 studies for skin cancer, head and neck tumours, among others. Sanofi will receive up to 140 million euros in milestone payments and royalties on net sales of the two drugs in China upon new drug application approvals, Innovent said.