Banking

Kadmon Stock Hits 5-Year High On Sanofi’s $1.9 Billion Takeover

Sanofi (SNY) said Wednesday it will spend $1.9 billion to acquire small biotech Kadmon Holdings (KDMN), and KDMN stock rocketed to a five-year high.




X



The deal adds Kadmon’s transplant drug Rezurock to Sanofi’s general medicines business. Rezurock treats chronic graft-versus-host disease in patients ages 12 and older who haven’t responded to two other therapies. The disease occurs when the body rejects a transplanted organ, and patients can suffer a variety of symptoms.

In morning trading on the stock market today, KDMN stock soared 72.8% near 9.20. Sanofi stock, on the other hand, dipped 2.5% near 50.30.

KDMN Stock Rockets On Takeover Deal

The deal expands Sanofi’s presence in transplant medicines. Currently, that consists of two drugs — one that broadly suppresses or modulates the immune system and another that helps release stem cells for collection ahead of a transplant.

Kadmon’s Rezurock gained Food and Drug Administration approval in July and launched a month later. KDMN stock rocketed nearly 21% on the day Rezurock was approved, though that was from a low base at 3.55.

Rezurock the first drug in its class to gain approval. Sanofi plans to seek approval in other countries. Kadmon is also testing Rezurock as a treatment for a skin-hardening disease. Kadmon also has a pipeline of potential treatments for immune and fibrotic diseases.

Sanofi is shifting its general medicines focus to differentiated products in key markets, said Olivier Charmeil, executive vice president of Sanofi’s general medicines business.

“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,” he said in a written statement.

Deal Will Be ‘Modestly Dilutive’ For Sanofi

Under the terms of the deal, Sanofi will spend $9.50 in cash per share of KDMN stock. The offer represents a 79% premium to Kadmon’s closing price on Tuesday and a 113% premium over the last 60 days’ volume-weighted average price.

Sanofi expects to wrap the transaction in the fourth quarter. The deal will be “modestly dilutive” to Sanofi’s earnings per share in 2022.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Cassava Tumbles — Again — After CEO Denies Data Manipulation Claims

Why InMode Stock Is Looking Picture Perfect Amid The Burgeoning Selfie Culture

Want More IBD Insights? Subscribe To Our Investing Podcast!

Follow Premarket And After-The-Open Action With IBD Experts

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks



Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button