Sanofi and Inhibrx – a publicly traded clinical-stage biopharmaceutical company focused on developing a broad pipeline of novel biologic therapeutic candidates – announced it has entered into a definitive agreement under which Sanofi has agreed to acquire Inhibrx following the spin-off of non-INBRX-101 assets into New Inhibrx.
INBRX-101 is a human recombinant protein that holds the promise of enablingAlpha-1 Antitrypsin Deficiency (AATD) patients to achieve normalization of serum AAT levels with less frequent (monthly vs. weekly) dosing. And AATD is an inherited rare disease characterized by low levels of AAT protein, predominantly affecting the lung with progressive deterioration of the tissue. INBRX-101 may help to reduce inflammation and prevent further deterioration of lung function in affected individuals.
INBRX-101 successfully completed a Phase 1 trial, demonstrating positive results in terms of safety and pharmacokinetics and is currently enrolling a Phase 2 clinical trial to further evaluate the potential of INBRX-101 as a treatment for AATD. And if successful, INBRX-101 could offer a significant improvement in the treatment options and quality of life for AATD patients.
Deal Terms
Under the terms of the merger agreement, Sanofi and Inhibrx have agreed to the following:
1.) Sanofi will acquire all outstanding shares of Inhibrx for $30.0 per share in cash, representing an equity value of about $1.7 billion (on a fully diluted basis);
2.) Inhibrx’s shareholders will receive one non-transferable CVR per Inhibrx share, entitling its holder to receive a deferred cash payment of $5.0, conditioned upon the achievement of a regulatory milestone. Assuming the conditions of the CVR are met, this would represent an additional cash consideration of approximately $296 million for Inhibrx’s shareholders;
3.) Sanofi will be responsible for the satisfaction of Inhibrx’s currently outstanding third-party debt;
4.) Inhibrx’s shareholders will receive 0.25 shares of the newly created entity New Inhibrx per Inhibrx share. New Inhibrx will be capitalized with $200 million of cash at distribution;
5.) Sanofi will retain an 8% equity stake in New Inhibrx
New Inhibrx will retain non-INBRX-101 assets, including its immuno-oncology pipeline (INBRX-109, INBRX-106, INBRX-105), and Inhibrx assets not related to INBRX-101 and Inhibrx’s employees. And it will be led by Mark P. Lappe, Founder and CEO of Inhibrx, as Chairman and CEO of New Inhibrx, and will continue to operate under the Inhibrx name.
The deal was unanimously approved by both the Sanofi and Inhibrx Boards of Directors.
Sanofi’s acquisition of Inhibrx is subject to the completion of the New Inhibrx spin-off transaction and other closing conditions, including receipt of regulatory approvals and approval by Inhibrx’s shareholders. And the companies expect the transaction to close in the course of Q2 2024.
Sanofi expects to fund the transaction with available cash resources.
Lazard is acting as exclusive financial advisor to Sanofi and Weil, Gotshal & Manges LLP is acting as its legal counsel. And Centerview Partners LLC is acting as exclusive financial advisor to Inhibrx and Paul, Weiss, Rifkind, Wharton and Garrison LLP is serving as legal counsel.
KEY QUOTE:
“The addition of INBRX-101 as a high potential asset to our rare disease portfolio reinforces our strategy to commit to differentiated and potential best-in-class products. With our expertise in rare diseases and growing presence in immune-mediated respiratory conditions, INBRX-101 will complement our approach to deploy R&D efforts in key areas of focus and address the needs of the underserved AATD patients and communities.”
– Houman Ashrafian, Head of Research and Development, Sanofi
