On September 8, healthcare companies Sanofi and Kadmon Holdings, Inc. announced that they entered into a definitive merger agreement in a pending $1.9 billion deal intended to grow Sanofi’s transplant business.
According to the press release, Kadmon is a “biopharmaceutical company that discovers, develops, and markets transformative therapies for disease areas of significant unmet medical needs.” The press release noted that the deal is part of Sanofi’s strategy to grow its core assets in General Medicines and “will immediately add Rezurock™ (belumosudil) to its transplant portfolio.” Rezurock is a treatment for chronic graft-versus-host disease (cGVHD) for individuals 12 years and older who have had at least two unsuccessful lines of systemic therapy.
Currently, French pharmaceutical company Sanofi’s transplant business primarily consists of Thymoglobulin (anti-thymocyte globulin) and Mozobil (plerixafor) as core assets to its General Medicines; these products are registered and marketed in at least 65 countries.
As part of the transaction, Kardmon common stock shareholders will receive $9.50 per share in cash for a total valuation of $1.9 billion on a fully diluted basis. The companies claimed that the deal is “expected to be modestly dilutive to Sanofis EPS in 2022.” The reverse triangular merger was unanimously approved by the respective Board of Directors for Sanofi and Kadmon. The deal is expected to close at the end of 2021.
Prior to the announcement, Kadmon’s shares (Nasdaq:KDMN) were valued at $5.30 on September 7, after the announcement on September 8, prices went to $9.07 and on September 9, were pretty similar at $9.09. Meanwhile, Sanofi’s shares (Nasdaq: SNY) were valued at $51.56 on September 7 and on September 8, on the day of the announcement, share prices were $50.12; a day later, share prices were $49.06.
This pending acquisition comes after Sanofi acquired Synthorx, Inc. in 2019 for $2.5 billion to improve its immuno-oncology assets and Bioverative Inc. in 2018 for $11.6 billion to expand its market share in the hematology and specialty care markets.
Kadmon is represented by DLA Piper and its financial advisors are Moelis and Company LLC and Cantor Fitzgerald & Co. Sanofi is represented by Weil, Gotshal & Manges LLP and Centerview Partners.
