Sanofi (SNYNF) has reached an agreement to acquire Amunix Pharmaceuticals, Inc., an immuno-oncology company, for $1 billion. The company is also to pay up to $225 million upon the achievement of future milestones. SNYNF shares rose 0.54% to close at $95.87 on December 21.
Sanofi engages in the research, development, and distribution of pharmaceutical products. It operates under the Pharmaceuticals, Consumer Healthcare, and Human Vaccines segments.
Sanofi Acquisition
The acquisition aligns with Sanofi’s bid to accelerate and expand the development of innovative medicines for oncology patients. According to the company’s Global Head of Research & Development, John Reed, the acquisition affirms Sanofi’s commitment to investing in promising research and discovery platforms.
Amunix leverages proprietary clinically validated XTEN® and masking technology platform, Pro-XTENTM to develop transformative T-cell engagers (TCE) and cytokine therapies for cancer patients.
Sanofi hopes to accelerate Amunix’s promising pipeline. and to combine their candidate medicines with Sanofi’s immuno-oncology portfolio. The transaction is expected to close in the first quarter of next year. However, it is also subject to expiration, termination and other customary closing conditions.
Stock Rating
Last week, Jefferies analyst Peter Welford reiterated a Buy Rating on Sanofi stock with a $10 price target, implying 41% upside potential to current levels. The analyst expects the company to deliver earnings per share of $1.85 for the fourth quarter of 2021.
Consensus among analysts is a Moderate Buy based on 10 Buys, 2 Holds, and 1 Sell. The average Sanofi price target of $117.91 implies a 22.99% upside potential to current levels.
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