Sanofi confirmed an offer of $3.3 billion to buy Translate Bio

Sanofi said it made a $3.3 billion offer to buy Translate Bio, as it decided to bet on mRNA technology after delays in the COVID-19 vaccine race.

The company announced in a statement that it would obtain all leading shares of Translate Bio that would be $39.00 per share, representing a total value of about $3.3 billion for Translate Bio.

Furthermore, the firm added that the committees of both companies approved the deal.

Chief Executive Paul Hudson said that Translate Bio adds an mRNA technology platform and robust capabilities to the research. He also noted that it improves their ability to explore this technology to develop therapeutics and vaccines.

Growing interest in mRNA technology

Sanofi shows an interest in a large pharmaceutical company in mRNA technology after its demonstrated success in COVID-19 vaccines developed by Moderna and Pfizer/BioNTech.

The messenger RNA approach guides human cells to produce specific proteins that stimulate an immune response to a disease. In 2018, Translate Bio and Sanofi decided to start working together. Last year, they teamed up for developing an mRNA-based COVID-19 vaccine.

These two companies also look at mRNA vaccines for some other infectious diseases. In June, they started a Phase I trial that will evaluate a potential mRNA-based vaccine against influenza. They will build it on Sanofi’s expertise that is considered one of the world’s best flu vaccine makers.

Sanofi showed interest after a challenging year of falling behind its rivals with less experience making COVID-19 vaccines. It was a significant blow to CEO Paul Hudson, who joined the firm nearly two years ago.

Lastly, Hudson experienced increasing pressure to reduce its dependence on the star eczema treatment Dupixent to increase earnings. This year, the company agreed to pack millions of vaccines made by Pfizer/BioNTech, Moderna and Johnson & Johnson.