Translate Bio soars 30% after Sanofi agrees to buy the mRNA company for $3.2 billion
- Shares of Translate Bio surged 30% on Tuesday after Sanofi agreed to buy the mRNA developer for $3.2 billion.
- Sanofi will purchase Translate Bio for $38 per share in cash and fast track its mRNA technology.
- The move comes following the success of Moderna, which developed a mRNA-based COVID-19 vaccine.
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Sanofi's agreement to buy Translate Bio for $3.2 billion sent shares of the junior biotech company surging as much as 30% in Tuesday trades.
The deal will strengthen Sanofi's messenger RNA capabilities, which has been top of mind for many biotech companies following the success of COVID-19 vaccines developed by Moderna and BioNTech. Both Moderna and BioNTech have soared to record highs in recent weeks, with both companies now worth well more than $100 billion.
Sanofi will pay $38 per share in all cash for Translate Bio, with the deal being unanimously approved by the board of directors of both companies. The deal represents a 56% premium to Translate Bio's volume-weighted average price per share over the past 60 days.
"Translate Bio adds an mRNA technology platform and strong capabilities to our research, further advancing our ability to explore the promise of this technology to develop both best-in-class vaccines and therapeutics," Sanofi CEO Paul Hudson said.
Translate Bio and Sanofi had already entered a collaboration agreement in 2018 to co-develop mRNA vaccines, which was expanded in 2020 amid the ongoing COVID-19 pandemic. The collaboration has developed two mRNA vaccines for COVID-19 and seasonal influenza, with data from both clinical trials expected later this year.