Inhibrx, Inc. (NASDAQ: INBX) stocks surged by 8.91%, reaching a closing price of $36.30. This upward trend was triggered by a transaction involving the sale of company assets.
Today, Inhibrx (INBX) and Sanofi declared the finalization of a strategic partnership. Under the agreement, Sanofi’s subsidiary Aventis Inc. will take over all assets and liabilities related to INBRX-101. This specific asset is a genetically engineered alpha-1 antitrypsin (“AAT”) enhancement medication currently in a registrational trial for treating patients with alpha-1 antitrypsin deficiency (“AATD”).
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Before the merger is completed, the Company plans to divest all non-101 assets and liabilities. This includes INBRX-105, INBRX-106, INBRX-109, the non-101 discovery pipeline, and the corporate infrastructure. These will be transferred to a new publicly traded entity named Inhibrx Biosciences, Inc. (“New Inhibrx”).
The terms of the transaction state that Sanofi will combine with Inhibrx to acquire all existing shares. Each shareholder of Inhibrx will get $30.00 in cash in exchange, along with a contingent value right that will allow them to potentially receive $5.00 in cash in the event that a regulatory milestone is met.
Furthermore, INBX shareholders will be allotted one SEC-registered, publicly listed share of New Inhibrx for every four shares of Inhibrx common stock held. In conjunction with the transaction, Sanofi will undertake the retirement of Inhibrx’s outstanding third-party debt and secure New Inhibrx with $200 million in cash, maintaining an 8% equity interest in the new entity. Both the Inhibrx and Sanofi boards of directors have unanimously sanctioned this transaction.
The comprehensive valuation of the deal, comprising the upfront cash component, the contingent value payment contingent upon achievement, and the assumption of Inhibrx’s debt, signifies an aggregate transaction value approximating $2.2 billion. Additionally, Inhibrx shareholders will retain a significant 92% ownership stake in New Inhibrx, capitalized with $200 million in cash.
Following the closure, New Inhibrx is prepared to continue operating under the “Inhibrx” name, with Mark Lappe serving as both chairman and CEO. This joint venture ushers in a new stage of strategic expansion and consolidation and represents a critical turning point in the histories of both organizations.
