In a big move in the pharmaceutical space, Sanofi (NYSE:SNY) in September entered into a definitive merger with therapeutic developer Kadmon (NSDQ:KDMN). Shareholders of Kadmon common stock were set to receive $9.50 per share in cash to total $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.
The acquisition bolsters Sanofi’s transplant portfolio with Rezurock (belumosudil), an 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. 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.
“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. “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.”