Sanofi and Novartis Lead 2024 Pharma Buyouts with Record-High Premiums

Leading Pharmaceutical Companies and their Competitive Negotiations

Emerging Negotiations and Bids

The acquisition of the company with the highest bid demonstrates the eagerness of the company for a merger, collaboration, and the unification and exchange of developmental progress between the two companies. Sanofi pharmaceutical company, paid the highest premium of 300% on its acquisition of Vigil Neuroscience. Many biopharma companies put in their all efforts for an accurate buyout. Novartis is a recent example of its acquisition for $800 million. Despite Sanofi’s highest premium of 300 %, the $470 million total value was a mere fraction of what Sanofi acquired TREM2 Alzheimer’s disease candidate, VG-3927 of Vigil. It’s the largest paid premium for acquisition this year, along with it, many other companies have bid high to finalize the deal.

Various Companies and their Highest Buyout

Novartis paid a 290% premium to acquire Regulus Therapeutics. Regulus Therapeutics is a San Diego-based company known for its oligonucleotide therapies like farabursen for autosomal dominant polycystic kidney disease (ADPKD). Additionally, Novartis paid $800 million along with the contingent value right (CVR) for approval of farabursen, offering the total deal of $1.7 billion. Novartis will pay $7 per share and an additional $7 per share in the CVR. Including this calculation, Regulus sealed the deal at $3.37.

BioMarin buys Inozyme Pharma for $308 million at a 182% premium, whereas Bristol Myers Squibb paid 100% double than the share price for cell therapy maker 2seventy in March.

Regulus Rise Up

The regulatory documents of Sanofi’s and Vigil's acquisition are not yet available. Whereas the deal notes from Novartis and Regulus were finalized on May 27, this highlights a speedy competitive process for these companies. After the announcement in June 2024 of the initial dose efficacy and reaction, found visible in a Phase Ib trial of farabursen, regulus, started to bid around. One of the biotech representatives, Evercore, went for 22 companies early, though Novartis, unlike other parties, didn’t sign to engage further. The unnamed biopharma company, registered as Party A, in the documents submitted a non-binding intention of interest in July 2024. The intention is to acquire a license to market and develop Farabursen.

Regulus denied this thought, to which Party A again offered a proposal along with the payment of CVR. This proposal was also declined by Regulus. After various successful FDA meetings and presentation of additional data, Regulus is in heavy demand. Novartis and Party A were bidding the highest bid, and the competition was equally tough to buy Regulus. Novartis, a Swiss pharma company, won the fierce negotiation. The deal was sealed the next day.