The $1.9 billion all-cash transaction works out to $9.5 per share, which Sanofi said represents a 79% premium over the biotech’s previous closing price. The boards of both companies have already improved the deal. Sanofi expects to complete the acquisition in the upcoming fourth quarter of 2021.

With the buy, the Paris-based drugmaker will gain access to Rezurock (belumosudil), which in July won the nod from the US Food and Drug Administration (FDA) for treatment of chronic graft-versus-host disease (cGVHD) in adult and pediatric patients 12 years and older who have failed at least two prior lines of systemic therapy. The small-molecule drug, which according to reports is priced at $15,500 per 30-count bottle, inhibits ROCK2, a signaling pathway that modulates inflammatory response and fibrotic processes.

Sanofi said it will work closely with regulatory authorities across different geographies to ensure that patients suffering from cGVHD can benefit from belumosudil treatment as early as possible. Kadmon is also developing Rezurock for the treatment of diffuse cutaneous systemic sclerosis, with an open-label Phase 2 clinical trial currently in progress.

The Rezurock franchise is described as complementary to Sanofi’s transplant portfolio, and analysts said Kadmon’s slate should benefit from being part of a large pharmaceutical company. The New York-based biotech’s pipeline includes drug candidates for immune and fibrotic diseases as well as immuno-oncology therapies.

Sanofi’s transplant offering consists mainly of Thymoglobulin (anti-thymocyte globulin), a polyclonal, anti-human thymocyte antibody preparation that acts as a broad immunosuppressive and immunomodulating agent, and Mozobil (plerixafor), a hematopoietic stem cell mobilizer. The two products, with combined sales of around of €530 million in 2020, are among its General Medicines core assets and are currently registered and marketed in more than 65 countries.

In a statement, Olivier Charmeil, executive vice president General Medicines at Sanofi, said the “big pharma” company’s expertise, and relationships in transplant “create an ideal platform to achieve the full potential of Rezurock, which will address the significant unmet medical needs of patients with chronic graft-versus-host disease around the world.”

Among several acquisitions Sanofi has kicked off this year, the company’s move to take over Translate Bio, its partner in developing a vaccine for Covid-19, is still in limbo. The US biotech said last week the plans are being refiled to provide the Federal Trade Commission (FTC) with more information.

Author: Dede Williams, Freelance Journalist