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Inhibrx (INBX) Up 6% on Sale of Rare Disease Drug to Sanofi
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Inhibrx (INBX - Free Report) and Sanofi (SNY - Free Report) 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.
For every share of Inhibrx held, existing shareholders will be eligible to receive 0.25 shares of New Inhibrx. Post this distribution, existing Inhibrx shareholders will hold a 92% stake in New Inhibrx, while Sanofi will retain the remaining stake.
Sanofi will also pay off all of Inhibrx’s currently outstanding third-party debt and will also capitalize on the newly formed company with $200 million in cash.
The acquisition deal, unanimously approved by the boards of directors of both companies, is subject to customary closing conditions, including approval from Inhibrx’s shareholders and regulatory authorities. The transaction is expected to be completed in second-quarter 2024.
Shares of Inhibrx were up 6% in pre-market trading on Jan 23 following the above announcement, indicating investor optimism on the news. In the past year, the stock is up 31% against the industry’s 14.2% decline.
Image Source: Zacks Investment Research
Through this transaction, Sanofi intends to strengthen its rare disease portfolio. An inherited rare disease of the lungs and liver, AATD is marked by low levels of AAT protein, mainly affecting the lungs, with progressive deterioration of the tissue.
INBRX-101 works by inhibiting neutrophil elastase, an enzyme responsible for lung tissue damage in AATD patients. The candidate is being evaluated in a mid-stage study for AATD. Sanofi believes that the successful development of the candidate could offer a significant improvement in the treatment options and quality of life for AATD patients.
Shares of Sanofi are up 4.5% in the past year compared with the industry’s 16.7% rise.
Image Source: Zacks Investment Research
Apart from INBRX-101, Inhibrx’s pipeline consists of other clinical therapeutic candidates, namely INBRX-105, INBRX-106 and INBRX-109, all of which are being evaluated in early-stage clinical studies targeting cancer indications.
Sanofi intends to finance this transaction with its available cash resources.
In the past 60 days, estimates for CytomX Therapeutics for 2023 have swung from a loss of 10 cents per share to earnings of 2 cents. During the same period, estimates for 2024 have narrowed from a loss of 22 cents to a loss of 6 cents. Shares of CytomX have lost 40.3% in the past year.
CytomX Therapeutics’ earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an average surprise of 45.44%. In the last reported quarter, CytomX Therapeutics’ earnings beat estimates by 123.53%.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.62 to $2.67. During the same period, the earnings estimates for 2024 have risen from $3.15 to $3.29. Shares of NVO have surged 49.6% in the past year.
Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an average surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.
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Inhibrx (INBX) Up 6% on Sale of Rare Disease Drug to Sanofi
Inhibrx (INBX - Free Report) and Sanofi (SNY - Free Report) 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.
For every share of Inhibrx held, existing shareholders will be eligible to receive 0.25 shares of New Inhibrx. Post this distribution, existing Inhibrx shareholders will hold a 92% stake in New Inhibrx, while Sanofi will retain the remaining stake.
Sanofi will also pay off all of Inhibrx’s currently outstanding third-party debt and will also capitalize on the newly formed company with $200 million in cash.
The acquisition deal, unanimously approved by the boards of directors of both companies, is subject to customary closing conditions, including approval from Inhibrx’s shareholders and regulatory authorities. The transaction is expected to be completed in second-quarter 2024.
Shares of Inhibrx were up 6% in pre-market trading on Jan 23 following the above announcement, indicating investor optimism on the news. In the past year, the stock is up 31% against the industry’s 14.2% decline.
Image Source: Zacks Investment Research
Through this transaction, Sanofi intends to strengthen its rare disease portfolio. An inherited rare disease of the lungs and liver, AATD is marked by low levels of AAT protein, mainly affecting the lungs, with progressive deterioration of the tissue.
INBRX-101 works by inhibiting neutrophil elastase, an enzyme responsible for lung tissue damage in AATD patients. The candidate is being evaluated in a mid-stage study for AATD. Sanofi believes that the successful development of the candidate could offer a significant improvement in the treatment options and quality of life for AATD patients.
Shares of Sanofi are up 4.5% in the past year compared with the industry’s 16.7% rise.
Image Source: Zacks Investment Research
Apart from INBRX-101, Inhibrx’s pipeline consists of other clinical therapeutic candidates, namely INBRX-105, INBRX-106 and INBRX-109, all of which are being evaluated in early-stage clinical studies targeting cancer indications.
Sanofi intends to finance this transaction with its available cash resources.
Inhibrx, Inc. Price
Inhibrx, Inc. price | Inhibrx, Inc. Quote
Sanofi Price
Sanofi price | Sanofi Quote
Zacks Rank & Stocks to Consider
Inhibrx and Sanofi carry a Zacks Rank #3 (Hold) at present. A couple of better-ranked stocks in the overall healthcare sector include CytomX Therapeutics (CTMX - Free Report) and Novo Nordisk (NVO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for CytomX Therapeutics for 2023 have swung from a loss of 10 cents per share to earnings of 2 cents. During the same period, estimates for 2024 have narrowed from a loss of 22 cents to a loss of 6 cents. Shares of CytomX have lost 40.3% in the past year.
CytomX Therapeutics’ earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an average surprise of 45.44%. In the last reported quarter, CytomX Therapeutics’ earnings beat estimates by 123.53%.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.62 to $2.67. During the same period, the earnings estimates for 2024 have risen from $3.15 to $3.29. Shares of NVO have surged 49.6% in the past year.
Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an average surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.