Sanofi to buy Belgian biotech group Ablynx for €3.9bn

Shares in Belgian biotech company Ablynx surged on Monday after it agreed to be bought by French pharmaceutical group Sanofi for €45 per share in cash, or €3.9bn.

Novo Nordisk, which offered up to €30.50 per share in cash for Ablynx earlier this month, confirmed that it will not be making a revised proposal.

"Novo Nordisk looks forward to continuing its productive research collaboration with Ablynx," it said.

Ablynx’s chief executive officer Edwin Moses said: “Since our founding in 2001, our team has been focused on unlocking the power of our Nanobody technology for patients. The results of our work are validated by clinical data. As we look ahead, we believe Sanofi’s global infrastructure, commitment to innovation and commercial capabilities will accelerate our ability to deliver our pipeline.

“Our board of directors feels strongly that this transaction represents compelling value for shareholders and maximizes the potential of our pipeline to the benefit of all stakeholders.”

Meanwhile, Sanofi said the deal continues its commitment to breakthrough innovation, focused on technologies addressing multiple disease targets with single multi-specific molecules. It pointed out that Ablynx is at the leading edge of nanobody technology, supporting a deep pipeline of more than 45 proprietary and partnered candidates for a wide range of therapeutic areas such as haematology, inflammation, immuno-oncology and respiratory diseases.

The offer is subject to a 75% acceptance level and customary regulatory approvals.

Olivetree Financial said this is a “sensible” deal for Sanofi as it continues to expand its haematology franchise, adding that this looks like a relatively straightforward transaction from a completion perspective.

“The key consideration here will be whether Novo, or others, will make a competitive bid. Sanofi is widely seen as the most appropriate acquirer for Ablynx, but one cannot rule out others entering the fray. Any improvement from Novo would likely need to remove the CVR. Given that in Belgium the counter needs to be a 5% improvement, Novo would need to bump almost 70% on their initial base €28 (+ €2.5 CVR) bid.

“They are keen to point out that their initial bid does not take into account the improved market size, but a 70% bump is a big ask from a firm such as Novo that has historically shown a degree of conservatism. That said, Ablynx’s operations are in a unique area that could potentially have multiple applications. Results from its Capla Phase II study have shown the efficacy of this method. As such, it cannot be ruled out that this situation continues to remain competitive.”

At 1000 GMT, Ablynx shares were up 21% to €44.90 while Sanofi shares were down 0.3% to € 73.24.