An agreement has been reached between the French pharmaceutical company Sanofi and Blueprint Medicines Corporation, a publicly traded biopharmaceutical company based in the US that specializes in treating KIT-driven diseases, including systemic mastocytosis (SM), a rare immunological disease.
The acquisition comprises a promising advanced and early-stage immunology pipeline as well as the US and EU-approved medication Ayvakit/Ayvakyt (avapritinib), which treats uncommon immunology diseases.
Additionally, it is anticipated that Blueprint's well-established reputation among immunologists, dermatologists, and allergists will strengthen Sanofi's expanding immunology pipeline.
For advanced and indolent systemic mastocytosis (ASM & ISM), a rare immunological illness marked by the accumulation and activation of aberrant mast cells in the gastrointestinal tract, skin, bone marrow, and other organs, Ayvakit/Ayvakyt is the only licensed medication.
BLU-808, a highly selective and powerful oral wild-type KIT inhibitor with the potential to treat a wide spectrum of immunological disorders, and elenestinib, a next-generation treatment for SM, will also be acquired.
Sanofi is expected to pay $129.00 per share in cash at closure under the terms of the transaction, which translates to an equity value of about $9.1 billion.
One non-tradeable contingent value right (CVR) will also be given to Blueprint shareholders.
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This CVR will entitle its holder to two possible milestone payments of $2 and $4 each, depending on whether future development and regulatory milestones for BLU-808 are met. On a fully diluted basis, the transaction's entire equity value, including any future CVR payments, is roughly $9.5 billion.