-Sanofi agrees to buy U.S. mRNA partner Translate Bio in $3.2 bln deal (updated)

Telesis Bio

03/08/2021 07:23

* Sanofi, Translate Bio developing potential COVID-19
vaccine
    * Offering $38/share for Translate Bio
    * Offer gives Translate Bio a $3.2 bln equity value

 (Adds details)
    By Matthias Blamont
    PARIS, Aug 3 (Reuters) - Sanofi  SASY.PA  has agreed to buy
U.S. biotech company Translate Bio  TBIO.O  in a $3.2 billion
deal, as it bets on next-generation mRNA technology after
setbacks in the COVID-19 vaccine race, confirming a Reuters
exclusive report.
    Sanofi said it would acquire all outstanding shares of
Translate Bio for $38.00 per share in cash, representing a total
equity value of about $3.2 billion for Translate Bio.
    The boards of both companies have approved the deal, and the
chief executive of Translate Bio and the U.S. company's largest
shareholder have backed the takeover offer, Sanofi and Translate
Bio said in a joint statement.
    "Translate Bio adds an mRNA technology platform and strong
capabilities to our research, further advancing our ability to
explore the promise of this technology to develop both
best-in-class vaccines and therapeutics," said Sanofi Chief
Executive Paul Hudson.
    Translate Bio's shares surged on Monday following the
Reuters report. Sanofi's offer of $38 represents a 30.4% premium
to Translate Bio's August 2 closing price of $29.15.
    
    GROWING INTEREST IN MRNA TECHNOLOGY
    Sanofi's bid for Translate Bio marks the latest interest by
a large pharmaceutical company in mRNA technology, following its
proven success in COVID-19 vaccines developed by Pfizer
 PFE.N /BioNTech  22UAg.DE   BTNX.O  and Moderna  MRNA.O .    
    The messenger RNA (ribonucleic acid) approach, an area of
Translate Bio expertise, instructs human cells to make specific
proteins that produce an immune response to a given disease.
    Sanofi and Translate Bio have been working together since
2018 and joined forces last year to develop an mRNA-based
COVID-19 vaccine. They expect interim results of their Phase
I/II clinical trial in the third quarter.
    The two companies are also looking at mRNA vaccines for
several infectious diseases and in June started a Phase I trial
evaluating a possible mRNA-based vaccine against seasonal
influenza, building on Sanofi's expertise as one of the world's
top flu vaccine makers.  urn:newsml:reuters.com:*:nASA02BJM
    
    TOUGH YEAR
    Sanofi's interest comes after a tough year for the French
drugmaker after falling behind rivals with less experience in
the COVID-19 vaccine race, a major blow to CEO Paul Hudson who
joined the company almost two years ago.
    Sanofi warned last year its traditional, protein-based
COVID-19 jab developed with GlaxoSmithKline  GSK.L  showed an
insufficient immune response in older people, delaying its
launch until toward the end of 2021.
    Hudson has also been under increasing pressure to reduce the
company's dependence on its star eczema treatment Dupixent to
boost earnings. Earlier this year, it agreed to fill and pack
millions of doses of shots made by Pfizer/BioNTech, Johnson &
Johnson  JNJ.N  and Moderna.
    Translate Bio, set up in 2016, has not launched any drugs on
the market but its clinical-stage pulmonary product using its
mRNA platform is being tested as an inhaled treatment for cystic
fibrosis in a Phase I/II clinical trial.
    Investment bank Morgan Stanley advised Sanofi on the deal,
while Translate Bio's financial advisers were Centerview
Partners and Evercore.

 (Reporting by Matthias Blamont in Paris; Additional reporting
by Caroline Humer and Lewis Krauskopf in New York, Ankur
Banerjee in Bengaluru, and Sudip Kar-Gupta in Paris; Editing by
Josephine Mason, Matthew Lewis, Sonali Paul and Louise Heavens)
 ((matthias.blamont@tr.com ; Twitter:@matthiasblamont;  +331
8098 1235;))