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Sanofi to buy Synthorx in US$2.5b deal to expand in cancer
[LONDON] Sanofi agreed to buy Synthorx Inc in a US$2.5 billion deal, accelerating its push into the field of cancer under new Chief Executive Officer Paul Hudson.
Sanofi will pay US$68 a share in cash for Synthorx, the Paris-based company said on Monday. That's more than double the California-based biotech company's closing share price of US$25.03 on Friday.
The deal underscores the Paris-based pharma giant's priorities to bolster its portfolio of innovative and front line therapies in fast-growing areas including cancer. It was unveiled a day before Mr Hudson outlines his pipeline and acquisition priorities, along with his plans for the consumer-health unit.
Investors are counting on Mr Hudson to fire up Sanofi's research operations and accelerate the search for novel products to reduce its reliance on Dupixent, a standout medicine for severe eczema and asthma. Mr Hudson, a former executive at Novartis AG, is credited with launching key medicines at his previous job before taking over the as the CEO at Sanofi in September.
Sanofi shares have climbed about 11 per cent since Mr Hudson was named CEO in June, closing at 83.56 euros on Friday. The stock had declined almost 16 per cent over the previous four years.