Sanofi (SNY) to Acquire mRNA Specialist Translate Bio (TBIO) for $3.2 Billion

August 3, 2021 6:30 AM EDT
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French drugmaker Sanofi (NYSE: SNY) has agreed to a deal to acquire mRNA specialist Translate Bio (NASDAQ: TBIO) in a deal worth $3.2 billion, or $38 per share.

The all-cash deal implied a premium of about 50% compared to yesterday’s closing price that gave the Massachusetts-based company a market valuation of $2.19 billion. Shares of the company exploded almost fivefold since the pandemic started and are up almost 30% in the pre-open.

“A fully owned platform allows us to develop additional opportunities in the fast-evolving mRNA space,” said Sanofi Chief Executive Paul Hudson.

“Our goal is to unlock the potential of mRNA in other strategic areas such as immunology, oncology, and rare diseases in addition to vaccines.”

Investors have invested aggressively in mRNA stocks after the next-generation technology proved extremely successful in developing a vaccine against COVID-19. Vaccines developed by Pfizer and Moderna are based on mRNA.

On the other hand, Sanofi suffered a huge blow in the COVID-19 vaccine race. Two companies have worked together since 2018.

Sanofi share price is up 0.6% in Paris today.

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