Sanofi Acquires Kadmon Holdings for Transplant Business Growth

Sanofi has entered into a definitive agreement to acquire Kadmon Holdings, Inc., a biopharmaceutical company, for approximately $1.9 billion in cash. This acquisition is intended to bolster Sanofi's transplant business by adding Kadmon's recently FDA-approved drug, Rezurock™ (belumosudil).

Rezurock is described as a first-in-class treatment for chronic graft-versus-host disease (cGVHD) in adult and pediatric patients aged 12 and older who have undergone at least two prior lines of systemic therapy and have not responded adequately. The drug was approved by the U.S. Food and Drug Administration in July 2021 and launched in August.

The acquisition supports Sanofi's strategy to grow its General Medicines core assets. Sanofi stated that its existing infrastructure and expertise in the transplant field provide an ideal platform to maximize Rezurock's potential and address unmet medical needs for cGVHD patients globally.

Kadmon also has a pipeline of drug candidates in development for immune and fibrotic diseases, as well as immuno-oncology therapies. Rezurock is also being investigated for the treatment of diffuse cutaneous systemic sclerosis.

The transaction is expected to be modestly dilutive to Sanofi's earnings per share in 2022. Kadmon shareholders will receive $9.50 per share in cash, representing a premium of approximately 79% over the company's closing stock price on September 7, 2021.