Sanofi to Acquire Synthorx for $2.5 Billion to Advance Immuno-Oncology Pipeline with Next-Gen IL-2 Therapy THOR-707

VCBeat (WeChat ID: vcbeat) has learned that on December 9, 2019, local time, Sanofi, the renowned healthcare giant headquartered in Paris, announced it would acquire Synthorx, a San Diego-based immuno-oncology company, for $68 per share in cash. The total value of the transaction is $2.5 billion (€2.3 billion). Reportedly, the deal has received unanimous approval from the boards of directors of both companies. This acquisition marks the first strategic merger and acquisition under Paul Hudson’s tenure as CEO of Sanofi, bringing to Sanofi THOR-707, a next-generation investigational IL-2 anticancer drug. Sanofi believes that THOR-707 has the potential to serve as the foundation for future immuno-oncology (I/O) combination therapies.

Synthorx went public on the Nasdaq one year ago at $11 per share and rarely traded above $20 in the public market in the short term. Sanofi’s offer represents a 172% premium over Synthorx’s closing price last Friday. Synthorx is a biotechnology company focused on immuno-oncology, with its lead candidate being THOR-707—a form of interleukin-2 (IL-2) currently being developed as a monotherapy and in combination with checkpoint inhibitors across multiple types of solid tumors. Both companies believe it has the potential to become a best-in-class IL-2 therapy for solid tumors. It is worth noting that Synthorx is among the many companies attempting to overcome the pharmacological limitations of the cytokine IL-2.

Previously, the recombinant IL-2 drug Proleukin (Aldesleukin), jointly developed by Novartis and Linigen, was approved as early as the 1990s and remains on the market today. However, the inconvenient dosing regimen of Proleukin, along with adverse events such as capillary leak syndrome, has limited its commercial performance.

Upon completion of the acquisition, Sanofi will also gain access to Synthorx’s genetics platform. Reportedly, this platform is synergistic with Sanofi’s existing platforms (including its nanobody technology), enabling Sanofi to develop a broader range of novel biologics, including antibody-drug conjugates, protein fusion proteins, and multispecific biologics.

Sanofi CEO Paul Hudson stated, “This acquisition aligns perfectly with our strategy to build a portfolio of high-quality assets and lead innovation. Furthermore, it supports our objective of establishing our franchise in oncology through practice-changing delivery methods and novel small-molecule combinations.”

This acquisition also marks Sanofi’s entry into the oncology market. It is the first major acquisition since January 2018, when Sanofi acquired Bioverativ, a Biogen spin-off based in Waltham, Massachusetts, for $11.6 billion. Approximately one week later, Sanofi acquired Ablynx, headquartered in Ghent, Belgium, for $2.4 billion. In April 2018, Sanofi sold its generics division, Zentiva, to Advent International, a private equity firm, for approximately $2.4 billion.