Sanofi Signs a $9.5B Agreement to Acquire Blueprint Medicines

Sanofi SNY announced that it has entered into a definitive agreement to acquire Blueprint Medicines BPMC for a total deal value of up to $9.5 billion. Following the announcement, shares of BPMC are up 26% today. Subject to the fulfillment of certain customary closing conditions, Sanofi currently expects to complete the acquisition in the third quarter of 2025.The impending acquisition will add Blueprint Medicines’ only marketed product, Ayvakit (avapritinib), an inhibitor of KIT and PDGFRA proteins, to Sanofi’s commercial portfolio, expanding the latter’s presence in rare immunological diseases.Ayvakit was initially approved in the United States and the EU to treat gastrointestinal stromal tumors. Later, the drug’s label was expanded by respective regulatory authorities in both geographies to treat advanced and indolent systemic mastocytosis (SM).Year to date, shares of Sanofi have gained 2.4% against the industry’s decline of 3.6%.Image Source: Zacks Investment ResearchThe acquisition will also add Blueprint Medicines’ innovative pipeline candidates to Sanofi’s early-stage immunology pipeline.In the first quarter of 2025, product revenues from Ayvakit sales totaled $149.4 million, representing a 61% year-over-year increase, driven by new patient starts, low discontinuation rates, and a high compliance rate. The company expects to achieve Ayvakit sales of $2 billion by 2030.Year to date, BPMC shares have gained 16.2% against the industry’s 3.8% decline.Image Source: Zacks Investment ResearchSNY/BPMC Deal’s Financial Considerations in DetailUnder the terms of the acquisition, Sanofi will pay $129 per share in cash upon closing the deal, indicating a premium of approximately 27% over the closing price of BPMC on Friday, resulting in an equity value of approximately $9.1 billion.In addition, Blueprint Medicines shareholders will receive a non-tradeable contingent value right (CVR), entitling them to two potential milestone payments of $2 and $4 per CVR, contingent on the achievement of future development and regulatory milestones for BLU-808. Including these potential CVR payments, the total equity value of the transaction, approximately amounts to a whopping $9.5 billion.Blueprint Medicines Corporation Price and Consensus Blueprint Medicines Corporation price-consensus-chart | Blueprint Medicines Corporation QuoteSanofi clarified that the BPMC acquisition will not materially impact its financial guidance for 2025. What's Sanofi’s Intent Behind the Deal?Sanofi has a strong immunology and neuro-inflammation pipeline, which includes 12 potential blockbuster assets in phase III development, including amlitelimab, frexalimab and tolebrutinib. Through this deal, SNY intends to expand its immunology pipeline and establish itself as a leading immunology company.Last month, Sanofi completed the acquisition of California-based Dren Bio’s investigational bispecific antibody, DR-0201, for a financial consideration of up to $1.9 billion. The candidate is being evaluated in two ongoing early-stage studies — B-cell non-Hodgkin lymphoma and autoimmune diseases.Sanofi Price and Consensus Sanofi price-consensus-chart | Sanofi QuoteThe potential success in the development of the above candidates will help the company narrow its dependence on the blockbuster immunology drug Dupixent, which is marketed in collaboration with Regeneron. This drug is currently a key top-line driver for both SNY and REGN. In first-quarter 2025, Sanofi recorded €3.48 billion from Dupixent product sales, indicating 20% year-over-year growth. The reported Dupixent sales figure accounted for about a third of the company’s total first-quarter revenues.SNY/BPMC Zacks Rank and Stocks to ConsiderSanofi and Blueprint Medicines currently carry a Zacks Rank #3 (Hold) each.Some better-ranked stocks in the biotech sector are Bayer BAYRY and Amarin AMRN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.19 to $1.25 for 2025. During the same time, earnings per share have increased from $1.28 to $1.31 for 2026. Year to date, shares of Bayer have gained 44.9%. BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%. In the past 60 days, estimates for Amarin’s loss per share for 2025 have narrowed from $5.33 to $2.78. During the same time, loss per share estimates for 2026 have narrowed from $4.13 to $2.04. Year to date, shares of AMRN have gained 19.5%.AMRN’s earnings beat estimates in two of the trailing four quarters, matched once and missed the same on the remaining occasion, delivering an average surprise of 29.11%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report Amarin Corporation PLC (AMRN): Free Stock Analysis Report Blueprint Medicines Corporation (BPMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks