Sanofi SA (NASDAQ:SNY) has announced its decision to spend $2.5 billion in the acquisition of Synthorx. This happens to be La Jolla’s startup focusing on the manufacture of drugs.
A close focus
Sanofi has its headquarters in Paris and is undoubtedly one of the most vibrant French multinational pharmaceutical companies. It has been performing quite well considering a report unveiled in 2013 describing it as the world’s fifth-largest in sales. This is specifically in terms of prescription sales.
Reports indicate that this startup which has been operational for about five years has been focusing on synthetic biology. It seems to have accomplished much so far, one aspect is the expansion of the genetic code. This is a major move towards offering support to researchers who want to turn to the development of more novel drugs.
Turn of events
It was way back in 2018 that Synthorx decided to go public. Sources indicate that the startup’s initial public offering went just fine. It managed to raise about $131 million, a figure that analysts described as massive.
Sanofi has been observing the startup closely and says that it believes in its capabilities. According to Sanofi, it is indeed a leader in the cancer drug innovation front. It applauds the startup for its efforts and agrees that the high price tag is surely befitting.
Analysts have aired out their thoughts describing the acquisition as one of the monumental ones in the recent past. They have pointed out that the last one they ever recognized was in 2018 and it was worth $7 billion. This was the Impact Biosciences deal.
RA Capital, OrbiMed and the San Diego-based Avalon Ventures were some of Synthorx’s strong backers. They started supporting it right from the start and time has finally come for them to reap.
Reports indicate that all of them have obtained some considerable returns from the deal. There has been a lot of talk regarding the startup’s purchase price. Analysts describe the $68 per share rate as a pretty impressive one and it speaks about the startup in a positive light.
Sanofi says that the deal was part of its elaborate plan to target significant growth in the dynamic business world.