France's Sanofi to buy U.S. biopharma group Blueprint for up to $9.5-billion

Globe and Mail

3 days ago

France's Sanofi SNY-Q has agreed to buy U.S.-based Blueprint Medicines Corporation BPMC-Q for up to US$9.5-billion to boost its position in rare immunology diseases, in the biggest deal struck by a European health care company so far this year, according to LSEG data.
Blueprint is a specialist in treatments for systemic mastocytosis, a rare blood disorder.
The two companies said on Monday that Sanofi would initially pay US$129.00 per share in cash, or around US$9.1-billion. Blueprint shares jumped 27 per cent to US$128.74 in premarket trade. Sanofi stock was down about 1 per cent.
Sanofi has ramped up research and development spending in recent years, prompting the company to abandon its long-term profit margin targets two years ago, as it seeks to build on the success of its blockbuster drug Dupixent for eczema and other conditions.
However, it suffered a setback last week after an experimental drug for patients with a lung condition commonly called 'smoker's lung' failed a late-stage trial.
The Blueprint acquisition 'represents a strategic step forward in our rare and immunology portfolios. It enhances our pipeline and accelerates our transformation into the world's leading immunology company,' said Sanofi CEO Paul Hudson.
The deal would add to Sanofi's portfolio the rare immunology disease drug Ayvakit, also known as Ayvakyt, approved in the U.S. and the EU, and a promising advanced and early-stage immunology pipeline.
Ayvakit is the only approved medicine for advanced and indolent systemic mastocytosis, a rare blood disorder that occurs when the body makes abnormal mast cells – a type of white blood cell. It triggers a continuous allergic response.
The acquisition would also bring elenestinib, a next-generation medicine for systemic mastocytosis, as well as BLU-808, a highly selective and potent oral wild-type KIT inhibitor that has the potential to treat a broad range of diseases in immunology.
The deal makes 'strategic and financial sense,' said JP Morgan analysts in a note, noting that Blueprint expects Ayvakit to reach annual sales of around $2-billion by fiscal year 2030.
'We see the transaction as a good fit for Sanofi at a sensible valuation, which investors should see as a positive with time,' they added.
It is the latest in a series of deals by Sanofi. Last month, it announced the US$470-million purchase of Vigil Neuroscience and in January, 2024, it struck a US$2.2-billion deal for U.S biotech firm Inhibrx.
Hudson said the deal complemented Sanofi's recent acquisitions of other early-stage medicines and added that it still retained a sizable capacity for further deals.
The company has said it plans to invest at least US$20-billion in the United States through 2030 to boost manufacturing and research, joining other drugmakers in responding to President Donald Trump's drive to boost local manufacturing.
Besides US$129.00 per share in cash, Blueprint shareholders would also receive one non-tradeable contingent value right (CVR) per share, which would entitle the holder to receive two potential milestone payments of US$2 and US$4 per CVR for the achievement, respectively, of future development and regulatory milestones for BLU-808.
The total equity value of the transaction, including potential CVR payments, is US$9.5-billion on a fully diluted basis. It is expected to close in the third quarter, pending regulatory and shareholder approvals.