Sanofi to buy Synthorx in $2.4bn cash deal

French pharmaceutical company Sanofi has agreed to buy US biotechnology group Synthorx Inc in a $2.4bn cash deal as it looks to bolster its immuno-oncology pipeline.

Under the terms of the deal, which has been unanimously approved by the boards of directors of both companies, Sanofi will pay $68 per share in cash. This represents a 172% premium to Synthorx’s closing share price on Friday.

Sanofi chief executive Paul Hudson said the acquisition "fits perfectly" with the group’s strategy to build a portfolio of high-quality assets and to lead with innovation. In addition, it is aligned with Sanofi’s goal to build its oncology franchise with "potentially practice-changing" medicines and novel combinations.

John Reed, global head of research & development at Sanofi, said: "Synthorx’s exceptionally novel discovery platform has already produced a molecule that has the potential to become a foundation of the next generation of immuno-oncology combination therapies.

"By selectively expanding the numbers of effector T-cells and natural killer cells in the body, THOR-707 can be combined with our current oncology medicines and our emerging pipeline of immuno-modulatory agents for treating cancer. Moreover, Synthorx’s pipeline of engineered lymphokines has great promise not only for oncology but also for addressing many autoimmune and inflammatory diseases."

The deal is expected to complete in the first quarter of next year.