Sanofi buys US biotech company Principia for $3.4bn

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Principia shares climb 11% after the French drugmaker announces the all-cash offer that will see it take full control

for about $3.4bn as the French drugmaker pivots towards innovative therapies to spur growth under new CEOThe all-cash deal will see Sanofi taking full control of the company, which focuses on treatments for multiple sclerosis and a range of autoimmune disorders, according to a statement on Monday.

Sanofi shares rose as much as 0.7% on Monday in Paris. Principia climbed as much as 11% in US premarket trading. The move follows the pharma giant’s pact in December to buy Synthorx for $2.5bn, and analysts say the company has the firepower for more transactions. Hudson late in 2019 announced a new strategy for Sanofi, saying it would end its hunt for new diabetes and heart disease drugs, helping save more than $2bn, and focus on areas that are ripe for innovation such as cancer.

Principia, based in San Francisco, is developing a therapy called rilzabrutinib for the treatment of immune-system conditions, according to its website, and is evaluating the medicine’s use in patients with pemphigus, a group of rare diseases that cause blistering of the skin and mucous membranes.

 

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