Principia Biopharma (PRNB) to be acquired by Sanofi (SNY) for $100 per share in cash

Sanofi SA has agreed to buy Principia Biopharma Inc. in a deal that values the developer of a promising multiple sclerosis treatment at $3.68 billion, the health-care giant’s latest move to focus more on specialty therapies over mass-market medicines.

 

Sanofi (SNY) and Principia Biopharma (PRNB) entered into a definitive agreement under which Sanofi will acquire all of the outstanding shares of Principia for $100 per share in cash, which represents an aggregate equity value of approximately $3.68 billion (on a fully diluted basis). The Sanofi and Principia Boards of Directors unanimously approved the transaction.

Under the terms of the merger agreement, Sanofi will commence a cash tender offer to acquire all outstanding shares of Principia common stock for $100 per share in cash for a total enterprise value of approximately $3.36 billion.

The consummation of the tender offer is subject to customary closing conditions, including the tender of at least a majority of the outstanding shares of Principia common stock, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary conditions. Following the successful completion of the tender offer, a wholly owned subsidiary of Sanofi will merge with Principia and the outstanding Principia shares not tendered in the tender offer will be converted into the right to receive the same $100 per share in cash paid in the tender offer. The tender offer is expected to commence later this month. Sanofi plans to finance the transaction with cash on hand. Subject to the satisfaction or waiver of customary closing conditions, Sanofi expects to complete the acquisition in the fourth quarter of 2020.

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IPOs this week : March 11 - 15, 2019

IPO activity: The six-month lockup on shares of Nio (NYSE:NIO) expires on March 11 in what should be a good test of investor sentiment. Nio soared following a positive 60 Minutes piece about two weeks ago before going into post-earnings skid. Interestingly, Goldman Sachs came in with a reinstated Buy call on Nio ahead of the lockup expiration as it pointed to the Chinese automaker's "successful branding" in the premium segment.

Other lockup expirations this week include;

• 111 (NASDAQ:YI) on March 11, 
• FVC Bancorp (NASDAQ:FVCB) on March 12 and 
• both Principia Biopharma (NASDAQ:PRNB) and Qutoutiao (NASDAQ:QTT) on March 13. 

Analysts can start covering TCR2 Therapeutics (NASDAQ:TCRR), Avedro (NASDAQ:AVDR), Achiano Therapeutics (NASDAQ:ANCN) and Imac (NASDAQ:IMAC) on March 11 and Stealth BioTherapeutics (NASDAQ:MITO) on March 12.

Principia Biopharma (PRNB) : 6-month performance

Principia Biopharma (PRNB) began trading on the Nasdaq on 14 September 2018

• Headquarters: South San Francisco, CA
• Founded: 2008
• principiabio.com

Priced 6.25 mln share IPO at $17.00, the high-end of the expected $15.00-17.00 range
Opened for trading at $25.66