Sanofi (NASDAQ:SNY) is shoring up its immunotherapy assets with a new buyout. The European pharmaceutical giant announced Monday that it has agreed to launch a formal offer for clinical-stage biotech Kiadis Pharma (OTC:KIAD.F). Sanofi is offering 5.45 euros ($6.34) per share for an aggregate adjusted equity value of 308 million euros ($358 million). This will be paid entirely in cash.
Sanofi didn't hesitate to mention that its offer is 272% higher than Kiadis' closing price on Friday. Unsurprisingly, the latter's management and supervisory boards have unanimously approved the bid.
Kiadis, based in the Netherlands, concentrates on developing cell-based immunotherapy treatments for potentially fatal diseases, particularly cancer.
It seems Sanofi was especially interested in therapies for the latter affliction. "We believe Kiadis' 'off the shelf' K-NK cell technology platform will have broad application against liquid and solid tumors, and create synergies with Sanofi's emerging immuno-oncology pipeline, providing opportunities for us to pursue potential best-in-disease approaches," the company quoted its global head of research and development, John Reed, as saying.
Immunotherapy has been a hot therapeutic area in the healthcare industry for years. Immunotherapy products are designed to "train" the body's immune system to identify and eliminate diseases, hence their popularity in the fight against cancer.
Sanofi and Kiadis already have a business relationship. In July, the former licensed KIadis' pre-clinical K-NK004 multiple myeloma program.
In their joint press release trumpeting the acquisition, the two companies wrote that it is subject to several customary conditions, including approval from the relevant regulatory bodies. The companies expect the deal to close in the first half of next year.