Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Kadmon Holdings (NASDAQ: KDMN) stock is rallying premarket on news that Sanofi has entered into an agreement to acquire the firm for $1.9 billion.
Sanofi said the acquisition of Kadmon, a biopharmaceutical company, supports its strategy to continue to grow its General Medicines core assets and will immediately add Rezurock to its transplant portfolio.
Kadmon shareholders will receive $9.50 per share in cash, representing a total value of approximately $1.9 billion. The price represents a premium of 79% on Kadmon's closing price on September 7 and a premium of around 113% over the 60 trading days volume-weighted average price.
“We are excited that Sanofi has acknowledged the value of Rezurock and the deep potential of our pipeline,” said Harlan Waksal, President and CEO of Kadmon.
“By leveraging Sanofi’s global resources and long-standing expertise in developing and commercializing innovative medicines, Rezurock is now well positioned for global accessibility, faster,” added Waksal.
Sanofi said the deal is expected to be modestly dilutive to its EPS in 2022.
Kadmon's share price has rallied 77.55% to $9.41 on news of the deal. Sanofi shares are unmoved premarket, sitting at $51.56.
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