Published on 21 Jan 2024 on Zacks via Yahoo Finance

Inhibrx (INBX) Up 6% on Sale of Rare Disease Drug to Sanofi

Inhibrx INBX and Sanofi SNY announced a definitive agreement wherein the latter will acquire the former’s pipeline candidate, INBRX-101, being developed for treating alpha-1 antitrypsin deficiency (AATD). The deal is valued at an aggregate transaction value of nearly $2.2 billion.

Per the terms of the agreement, Sanofi will initially acquire all outstanding shares of Inhibrx through a merger. Post this merger, Sanofi will retain the AATD candidate and will spin out all the other pipeline programs acquired from Inhibrx into a new publicly traded company, Inhibrx Biosciences, Inc. (‘New Inhibrx’), which will continue to be operated by Inhibrx’s current management.

In consideration for entering into the merger, existing Inhibrx shareholders will be eligible to receive $30 per share in cash. The existing shareholders will also receive one non-tradeable contingent value right (“CVR”) per share, entitling the holder to receive an additional $5 per share, provided a regulatory milestone is achieved.