SAN DIEGO - In a significant move within the biopharmaceutical sector, Sanofi (NASDAQ:SNY) has agreed to acquire assets from Inhibrx, Inc. (NASDAQ:INBX), including the promising INBRX-101 therapy, in a deal worth up to $2.2 billion. The transaction, unanimously approved by both companies' boards, will provide Inhibrx shareholders with $30.00 in cash per share, a $5.00 contingent value right, and a quarter share in a new entity for every four shares held.
The new company, Inhibrx Biosciences, Inc. ("New Inhibrx"), will inherit the non-101 assets and liabilities of Inhibrx, including several clinical therapeutic candidates and will commence trading publicly. This spin-off will be capitalized with $200 million in cash, and Sanofi will retain an 8% equity interest. Inhibrx shareholders are set to own 92% of New Inhibrx.
Sanofi's acquisition centers around INBRX-101, a therapy for alpha-1 antitrypsin deficiency currently in a registrational trial. The agreement stipulates that Sanofi will also assume and retire Inhibrx's outstanding debt. The total value of the upfront cash, contingent payment, and debt assumption implies an aggregate transaction value of approximately $2.2 billion.
Mark Lappe will continue to lead New Inhibrx as Chairman and CEO, along with the current Inhibrx management team. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, including regulatory approvals and approval by Inhibrx's stockholders.
Sanofi plans to finance the acquisition with its available cash resources. The deal is anticipated to bolster Sanofi's portfolio in treating orphan diseases, while Inhibrx focuses on further developing its remaining therapeutic candidates.
This news is based on a press release statement from Inhibrx, Inc.
InvestingPro Insights
As Inhibrx, Inc. (NASDAQ:INBX) navigates through this transformative acquisition by Sanofi, current and potential investors can gain additional insights from InvestingPro data and tips. The company's market capitalization stands at $1.58 billion, reflecting a notable presence in the biopharmaceutical sector. Despite a challenging financial performance with a last twelve months revenue of just $0.44 million and a significant revenue decline of over 90%, Inhibrx has managed strong stock price performance with a 124.9% return over the last three months, indicating investor confidence in its long-term potential.
InvestingPro Tips highlight that Inhibrx's stock price movements have been quite volatile, which could be a factor for investors with a lower risk tolerance to consider. Furthermore, despite analysts' anticipation of a sales decline and a drop in net income for the current year, the company's liquid assets exceed short-term obligations, suggesting a degree of financial resilience.
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