Sanofi to buy Principia for $3.4B

Aug. 17, 2020

Sanofi has agreed to acquire U.S. biotech company Principia Biopharma for about $3.4 billion as the French drugmaker looks towards innovative specialty therapies.

The deal — which was first mentioned by Bloomberg sources last month — is focused on Principia’s pipeline in autoimmune diseases. The pipeline includes Principia's most advanced drug candidate, a BTK inhibitor called rilzabrutinib, being evaluated in Phase 3 trials against pemphigus, which can cause blisters or pus-filled bumps on the skin and mucous membranes and is caused when the immune system mistakenly makes antibodies that attack the body. Phase 3 trials are also planned for a second drug candidate that the two companies have partnered on since 2017 which could treat multiple forms of multiple sclerosis.

Bloomberg Intelligence estimates that Sanofi has as much as $50 billion to spend on acquisitions, following the disposal of its stake in Regeneron Pharmaceuticals in May.

Sanofi is aiming for a fourth-quarter completion of the all-cash deal.

Read the press release