Sanofi (NYSE:SNY) announced today that it entered into a definitive merger with therapeutic developer Kadmon (NSDQ:KDMN) for $1.9 billion.
The acquisition adds Rezurock (belumosudil), a recently FDA-approved, first-in-class treatment for chronic graft-versus-host disease (cGVHD) for patients over 12 years old who have failed at least two prior lines of systemic therapy, to Sanofi’s transplant portfolio.
According to a news release, shareholders of Kadmon common stock will receive $9.50 per share in cash, representing a total equity value of approximately $1.9 billion on a fully diluted basis. The boards of directors for both companies unanimously approved the transaction and the companies expect it to be modestly dilutive to Sanofi’s earnings per share in 2022.
Rezurock launched in the U.S. in August as the first and only approved small molecule therapy that inhibits the Rho-associated coiled-coil kinase 2 (ROCK2) signaling pathway. Sanofi said it will work closely with regulatory authorities across the globe to ensure that the treatment is made available while Kadmon also develops Rezurock for treating diffuse cutaneous systemic sclerosis and is currently conducting a Phase 2 clinical trial for it.
“We are transforming and simplifying our General Medicines business and have shifted our focus on differentiated core assets in key markets,” Sanofi EVP of General Medicines Olivier Charmeil said in the release. “We are thrilled to add Kadmon’s Rezurock to our well-established transplant portfolio. Our existing scale, expertise, and relationships in transplant create an ideal platform to achieve the full potential of Rezurock, which will address the significant unmet medical needs of patients with chronic graft-versus-host disease around the world.”
“We are excited that Sanofi has acknowledged the value of Rezurock and the deep potential of our pipeline,” added Kadmon President and CEO Dr. Harlan Waksal. “By leveraging Sanofi’s global resources and long-standing expertise in developing and commercializing innovative medicines, Rezurock is now well positioned for global accessibility, faster. I want to thank the entire Kadmon team, including management and the board of directors, and the Sanofi organization, for their ongoing commitment to patients and their caregivers.”
