Kadmon Holdings share prices boosted on Wednesday in pre-market share trading as the French drug formulator Sanofi revealed he is purchasing the US Biotech pharmaceutical for $9.5 billion in cash per share.
Kadmon’s shares seem to be rising to $9.2. This deal is 79% higher than the stock’s closing price that was $5.30 on Tuesday. That shows Kadmon stock prices have boosted to 27 percent for the year.
Kadmon has a $901 million market cap as illustrated in the graph below,
The deal also includes Rezurock that Food and Drug Administration officials recently approved to treat graft versus host chronic disease for patients, including adults and children who are 12 or older and failed a minimum of two previous system therapies.
Kadmon’s pipelines also involve medicine candidates for fibrotic and immune diseases, including immuno-oncology therapies as well.
Kadmon’s president and chief executive, Dr. Harlan Waksal, said, “We are excited that Sanofi has acknowledged the value of Rezurock and the deep potential of our pipeline,” and added, “By leveraging Sanofi’s global resources and long-standing expertise in developing and commercializing innovative medicines, Rezurock is now well-positioned for global accessibility, faster.”
As per the French drug manufacturer Sanofi Aventis, all transactions of the future must be “Modestly Dilutive” to per-share earnings in the year 2022.
Reportedly, last month Sanofi also agreed to another biotech called Translate Bio for $3.2 billion, which is found to be specializing in M-RNA technology. It is the same technology that BioNTech (BNTX) and Moderna (MRNA) used to prepare their covid vaccines.
Sanofi is expected to complete the purchase transaction in the 4th quarter with their existing cash resources.