M&A News: Sanofi Expands Cancer Drug Portfolio with $9.1B Blueprint Medicines Acquisition

French pharmaceutical giant Sanofi (SNY) has agreed to acquire U.S.-based Blueprint Medicines (BPMC) in a bold move to strengthen its presence in oncology. Sanofi CEO Paul Hudson said the deal marks “a strategic step forward” in advancing the company’s rare disease and immunology portfolios. Following the announcement, BPMC stock gained over 26% in pre-market trading, while SNY is up 0.22%.

Details About Sanofi-Blueprint Acquisition

Sanofi has agreed to purchase Blueprint Medicines for $129.00 per share in cash, valuing the deal at $9.1 billion, marking a 27.3% premium over Blueprint’s closing share price last Friday.

In addition to the upfront payment, Sanofi has offered Blueprint shareholders two potential contingent value rights (CVRs) worth $2 and $4, tied to future regulatory milestones for BLU-808, an immunology drug currently in development. Including these CVRs, the total potential value of the deal could reach $9.5 billion.

Sanofi Bets Big on Blueprint’s Ayvakit

Blueprint Medicines is a U.S.-based biopharmaceutical company focused on treating systemic mastocytosis, a rare immunological disorder. Notably, its flagship drug, Ayvakit or Ayvakyt, is the only approved treatment for both advanced and indolent forms of systemic mastocytosis. The disease is marked by the abnormal buildup and activation of mast cells in areas such as the bone marrow, skin, gastrointestinal tract, and other organs.

Sanofi stated that the main reason for the acquisition was Blueprint’s focus on immunology, Ayvakit, and its pipeline of promising therapies. The acquisition will also give Sanofi access to elenestinib, a next-generation treatment for systemic mastocytosis, and BLU-808, a powerful and targeted oral KIT inhibitor. BLU-808 shows strong potential for treating a wide range of immunological diseases.

Sanofi also noted that Blueprint’s strong connections with allergists, dermatologists, and immunologists will help strengthen its expanding immunology portfolio.

What is the Target Price of Sanofi?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SNY stock based on 1 Buy and two Holds assigned in the past three months. The average SNY stock price target of $66.33 per share implies a 34.5% upside potential.

See more SNY analyst ratings