Latest news with #PaulHudson
Yahoo
2 days ago
- Business
- Yahoo
Sanofi to acquire Blueprint for up to $9.5B
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Looking to further amp up its immunology business, Sanofi has agreed to acquire Blueprint Medicines in a deal that could be worth as much as $9.5 billion. Blueprint's research revolves around an enzyme made by a gene called KIT. This 'tyrosine kinase' enzyme helps control cell development, division and survival, so if it mutates, it can spur the type of uncontrolled cell growth seen in cancer and some rare diseases. Blueprint already has one medicine approved by the Food and Drug Administration, Ayvakit, and is working on a handful of others, two of which are in human testing. The FDA first approved Ayvakit in early 2020 for a rare kind of hard-to-treat gastrointestinal tumor, and specifically for the small subset of adults who have these tumors and certain mutations. Since then, the agency cleared the medicine as a treatment for both the less and more aggressive forms of 'systemic mastocytosis,' an uncommon disorder where a kind of white blood cell known as a mast cell builds up in the bone marrow, digestive tract, skin and other organs. The accumulation can lead to severe inflammation and organ damage. Last year, Blueprint posted $479 million in net product revenue from Ayvakit. The company used to have another marketed cancer drug, Gavreto, which it was co-developing and commercializing with Roche. But Roche ultimately backed away from that alliance, leading Blueprint to sell away rights to Rigel Pharmaceuticals in early 2024. In a statement announcing the deal, Sanofi highlighted the recent trajectory in Ayvakit sales. They were up more than 60%, for example, between the first quarter of 2024 and the same three-month period this year. Blueprint recorded a $67 million net loss in 2024, compared to a more than half-a-billion-dollar net loss in each of the previous two years. The proposed acquisition 'represents a strategic step forward in our rare and immunology portfolios,' Sanofi CEO Paul Hudson said in the Monday statement. 'It enhances our pipeline and accelerates our transformation into the world's leading immunology company.' Hudson added that his company maintains a 'sizeable capacity for further acquisitions.' After being an active dealmaker over the past few years, the French pharmaceutical giant still had close to 8 billion euros in cash and cash equivalents at the end of March. Sanofi bought the diabetes drug developer Provention Bio for almost $3 billion in 2023 and the rare disease-focused Inhibrix for $2.2 billion in 2024. And just last month, it agreed to spend $470 million on Vigil Neuroscience, a Massachusetts-based biotechnology company touting an Alzheimer's disease drug that just finished an early-stage human study. Similar to its Vigil proposal, Sanofi is offering Blueprint investors a so-called contingent value right that could be worth up to $6 per Blueprint share, provided one of the biotech's experimental drugs, 'BLU-808,' hits certain development and regulatory goals. BLU-808 is in mid-stage testing as a possible treatment for chronic hives and an allergy-related condition that causes runny eyes and a congested nose. Blueprint also believes the drug could be useful in treating allergic asthma and 'mast cell activation syndrome.' Another Blueprint drug, elenestinib, is further along, having advanced to a late-stage study for the slower-moving form of systemic mastocytosis. Sanofi's upfront payment of $9.1 billion values Blueprint shares at $129 apiece, reflecting a premium of about 27% from the biotech's closing stock price on Friday. The transaction is expected to close sometime between July and the end of September, according to Sanofi. Andrew Berens, an analyst at the investment firm Leerink Partners, wrote in a note to clients how his team expected Blueprint to land on the 'strategic radar of large pharma' given Ayvakit is on the path to $1 billion or more in annual sales and the company recently raised its financial guidance for this year. However, the deal came sooner than anticipated, ahead of a key data readout for a rival drug from Cogent Biosciences. Cogent's bezuclastinib is also being evaluated as a treatment for systemic mastocytosis, with results set to arrive in the next couple months. Regardless of how strong or weak those results will be, Berens believes they'd serve as a tailwind for Blueprint 'by removing a key overhang and allowing a strategic acquirer to structure a deal based on assumptions about ... market dynamics.' As such, Cogent's data could have propped up Blueprint's share price, 'which may have been an impetus for Sanofi to do the deal now,' Berens posited. Even so, the analyst still sees Sanofi's bid as a positive for Blueprint and this field of research. Cogent shares were down by about 2% late Monday morning. Recommended Reading Blueprint wins key FDA approval for rare disease drug Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Sanofi to buy US biopharma group Blueprint for up to $9.5 billion
PARIS, June 2 (Reuters) - France's Sanofi has agreed to buy U.S.-based Blueprint Medicines Corporation for up to $9.5 billion to boost its position in rare immunology diseases, in the biggest deal struck by a European healthcare company so far this year, according to LSEG data. Blueprint (BPMC.O), opens new tab is a specialist in treatments for systemic mastocytosis, a rare blood disorder. Sign up here. The two companies said on Monday that Sanofi ( opens new tab would initially pay $129.00 per share in cash, or around $9.1 billion. Blueprint shares jumped 27% to $128.74 in premarket trade. Sanofi stock was down about 1%. 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 $470 million purchase of Vigil Neuroscience (VIGL.O), opens new tab and in January 2024 it struck a $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 $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 $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 $2 and $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 $9.5 billion on a fully diluted basis. It is expected to close in the third quarter, pending regulatory and shareholder approvals.
Yahoo
3 days ago
- Business
- Yahoo
Blueprint Medicines Stock Soars as Biotech Agrees to Over $9B Sanofi Takeover
French drugmaker Sanofi said Monday it has agreed to acquire Blueprint Medicines for up to $9.5 billion, sending shares of the Cambridge, Mass.-based biopharma firm soaring in intraday trading. The deal expands Sanofi's immunology pipeline and access to drugs to treat systemic mastocytosis (SM), a rare immunological disease. Sanofi CEO Paul Hudson said that the French company "still retains a sizeable capacity for further acquisitions."French drugmaker Sanofi (SNY) said Monday it has agreed to acquire Blueprint Medicines (BPMC) for up to $9.5 billion, sending shares of the Cambridge, Mass.-based biopharma firm soaring in in intraday trading. The deal expands Sanofi's immunology pipeline and access to drugs to treat systemic mastocytosis (SM), a rare immunological disease, and "other KIT-driven diseases," the company said. Sanofi also noted that the acquisition would give it access to rare immunology disease medicine avapritinib, marketed as Ayvakit or Ayvakyt, which has been approved in the U.S. and the European Union (EU). "The proposed acquisition of Blueprint Medicines represents a strategic step forward in our rare and immunology portfolios," Sanofi CEO Paul Hudson said, adding that the French company "still retains a sizeable capacity for further acquisitions." Under the terms of the Blueprint transaction, Sanofi will pay $129.00 per share in cash or $9.1 billion as well as potential milestone payments. The deal is the latest by the French pharma giant, which last month agreed to buy Alzheimer's disease drug developer Vigil Neuroscience (VIGL). Sanofi shares were down slightly Monday but are up 2% year-to-date through Friday. Blueprint shares are gaining 26% in intraday trading and have risen 16% entering Monday. UPDATE—June 2, 2025: This article has been updated to include refreshed share prices. Read the original article on Investopedia
Yahoo
3 days ago
- Business
- Yahoo
Sanofi Just Spent $9.5 Billion on a Rare Disease You've Never Heard Of
Sanofi (NASDAQ:SNY) is making another bold move to cement its position in immunology, agreeing to acquire Blueprint Medicines (NASDAQ:BPMC) for $129 a share in cashplus up to $6 in milestone payments tied to future success of its next-gen drug candidate BLU-808. That pegs the total deal at around $9.5 billion, a 40% premium over Blueprint's 30-day average. The prize? Ayvakit, the only approved treatment for systemic mastocytosis (SM)a rare and debilitating immune disorderas well as a pipeline that could unlock broader inflammatory markets. Warning! GuruFocus has detected 1 Warning Sign with SNY. Ayvakit is no science project. The drug pulled in $479 million last year and nearly $150 million in Q1 2025, up more than 60% year-over-year. And this isn't a one-hit wonder. Sanofi's also picking up elenestinib (currently in Phase 2/3) and BLU-808an oral KIT inhibitor that could have applications well beyond SM. The deal could plug directly into Sanofi's immunology machine, which already includes Dupixent, and give it deeper reach among allergists and immunologists. CEO Paul Hudson called the deal a strategic step forward and suggested more acquisitions could be on the horizon. If all goes to plan, the transaction closes by Q3 2025. It won't move the needle on Sanofi's 2025 financials, but it could begin lifting margins and earnings starting in 2026. Sanofi's paying cash and tapping some fresh debt, but the tender offer isn't contingent on financing. For Blueprint, it's a scale-up opportunityand a potential fast-pass to bring its early-stage science to more patients globally. The bet here is simple: Sanofi sees rare immunology not just as a niche, but as a high-margin, high-loyalty growth engineand it's not done building. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Sanofi to expand immunology offerings with Blueprint Medicines
Sanofi has agreed to acquire US-based Blueprint Medicines for an equity value of $9.1bn to bolster its immunology pipeline with rare disease treatments. The acquisition includes Ayvakit/Ayvakyt (avapritinib), a rare immunology disease medicine approved in the US and European Union (EU), and an early-stage immunology pipeline. Ayvakit/Ayvakyt is the only medicine for treating advanced and indolent systemic mastocytosis (ASM & ISM), a condition marked by abnormal mast cell accumulation. The acquisition also adds elenestinib, a medicine for systemic mastocytosis, and an oral wild-type KIT inhibitor BLU-808, for a wide range of immunological diseases. Sanofi has committed to pay $129.00 per share in cash at close. Blueprint shareholders will obtain a non-tradeable contingent value right (CVR), which could lead to further payments based on future milestones for BLU-808. The total value, inclusive of potential CVR payments, could reach $9.5bn. The offer price indicates a 27% premium on Blueprint's closing price as of 30 May 2025, and a 34% premium over the 30-day volume-weighted average price (VWAP). Upon completion of the tender offer, a Sanofi subsidiary will merge with and into Blueprint, and non-tendered shares will be converted into the right to receive the same $129.00 per share in cash plus one CVR. Sanofi plans to finance this transaction using existing cash reserves and proceeds from new debt, with no financing condition attached to the tender offer. Sanofi CEO Paul Hudson stated: "The proposed acquisition of Blueprint Medicines 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. 'This acquisition is fully aligned with our strategic intent to strengthen our existing therapeutic areas, to bring relevant and differentiated medicines to patients and to secure attractive returns to our shareholders. 'It complements recent acquisitions of early-stage medicines that remain our main field of interest. Sanofi still retains a sizeable capacity for further acquisitions.' Sanofi recently agreed to acquire Vigil Neuroscience for $470m, almost a year after investing an initial $40m in the company. "Sanofi to expand immunology offerings with Blueprint Medicines" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
