Sanofi is picking up Inhibrx, Inc. in an acquisition worth up to $2.2 billion, the France-based drugmaker announced Tuesday morning.

Sanofi will acquire all of Inhibrx’s outstanding shares for $30 per share, with Inhibrix shareholders set to receive a contingent payment of $5 per share in cash depending on regulatory milestones. 

Under the deal, Sanofi will also take on Inhibrx’s outstanding third-party debt, and provide the new company, dubbed “New Inhibrx,” with $200 million in cash. Altogether, the value of the deal is worth about $2.2 billion.

The Inhibrx pickup gives Sanofi access to INBRX-101, a human recombinant protein that is being investigated in patients with alpha-1 antitrypsin deficiency (AATD), a rare inherited disease that is linked to lung and liver disease. INBRX-101 aims to normalize serum AAT levels in patients with the deficiency, while allowing for less frequent dosing.

INBRX-101 is currently starting enrollment for a Phase 2 trial, after showing promise in safety and pharmacokinetics in a Phase 1.

With INBRX-101 under its wing, Sanofi plans to spin off Inhibrx’s other assets into New Inhibrixm which will retain its other assets, including a few drugs in its immuno-oncology pipeline: INBRX-109, INBRX-106 and INBRX-105. 

Mark Lappe, founder and CEO of Inhibrx, will remain on as chairman and CEO of the subsidiary and the acquisition is expected to close in Q2 2024.

“The addition of INBRX-101 as a high potential asset to our rare disease portfolio reinforces our strategy to commit to differentiated and potential best-in-class products,” said Houman Ashrafian, head of research and development at Sanofi, in a statement. “With our expertise in rare diseases and growing presence in immune-mediated respiratory conditions, INBRX-101 will complement our approach to deploy R&D efforts in key areas of focus and address the needs of the underserved AATD patients and communities.”

Inhibrx is the latest in several rare disease investments Sanofi has focused on. Back in May 2023, Sanofi struck a $150 million licensing deal with Maze to gain its glycogen synthase 1 (GYS1) program, including its lead candidate MZE001, a treatment for Pompe disease.

The move comes as Sanofi CEO Paul Hudson announced in the fall that the pharma company was entering the next phase of its “Play to Win” strategy. 

Since helming the company starting in 2019, Hudson has spearheaded the “Play to Win” initiative to focus on “growth, innovation and efficiency.”

In the fall, Hudson pushed that Sanofi’s next phase will involve more pipeline investments that had “long-term growth potential.” By the end of 2023, Hudson laid out 12 clinical-stage assets that it considered having “blockbuster” potential, including its multiple sclerosis, asthma and inflammatory bowel disease treatments.

For a May 2024 article about Sanofi striking a licensing pact with Novavax for COVID, flu-COVID combo shots, click here.