French drugmaker Sanofi is buying San Diego-based Inhibrx, including a promising drug therapy, for up to $2.2 billion.
The deal, announced Tuesday, gives Sanofi access to INBRX-101, a drug candidate that is a form of a protein called alpha-1 antitrypsin, which normally protects the lungs and liver. Some people don’t produce enough of the protein, which can lead to liver damage and chronic obstructive pulmonary disease.
Additionally, Inhibrx will spin off into a new company called Inhibrx Biosciences Inc. and retain all of its non-INBRX-101 related work including its immuno-oncology drug candidates and employees. The new company will be led by its existing CEO and co-founder, Mark Lappe.
“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,” said Houman Ashrafian, Sanofi’s head of research and development in the announcement. “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 (Alpha-1 Antitrypsin Deficiency) patients and communities.”
Inhibrx declined to comment on the Sanofi deal.
Inhibrx was founded in 2017 as Tenium Therapeutic but changed its name to Inhibrx in 2018. The biotech’s drug development efforts focus on antibodies, Y-shaped proteins made by the immune system that latch onto a cell’s surface. Antibodies can spark or stymie cellular signals if they grab a cell tightly enough at just the right spot.
Inhibrx shares up after San Diego biotech’s $137M initial public offeringThe company nabbed $137 million during its initial public offering in 2020. Inhibrx reported total revenue of approximately $2.2 million in 2022 — most of which was from license fees and grants — and lost about $76 million.
Sanofi is assuming Inhibrx’s outstanding debt, buying its stock for $30 per share, or approximately $1.7 billion and paying up to $296 million for Inhibrx’s shareholders, which is contingent upon certain milestones. The spin-off Inhibrx company will be financed by Sanofi with $200 million in cash.
The French pharma will also retain an 8 percent stake in the new Inhibrx company, which will continue to trade on the Nasdaq under the INBX ticker.
The transaction is expected to close in the second quarter of 2024.
After a sluggish year for dealmaking — compared to the record-breaking activity of 2021 — San Diego’s big biotech deals have picked up as of late.
Earlier this month, Johnson and Johnson acquired Torrey Pines-based Ambrx Biopharma for $2 billion. And the day after Christmas, Bristol Myers Squibb bought RayzeBio, the local maker of targeted cancer therapies for $4.1 billion.
