Sanofi to Acquire Origimm Biotechnology
This article was originally published on TipRanks.com
Healthcare company Sanofi S.A. (SNY) recently revealed that it has entered into an agreement to acquire a biotechnology company, Origimm Biotechnology GmbH. The terms of the deal have not been disclosed so far. Following the news, shares of the company rose 1% to close at $48.06 on Wednesday.
Implications of the Deal
Origimm’s expertise in the discovery of virulent skin microbiome components and antigens from bacteria causing skin disease will allow Sanofi to gain a strong foothold in this space.
The buyout will enable Sanofi to add ORI-001 to its early-stage pipeline. ORI-001 is a therapeutic vaccine candidate for acne vulgaris based on recombinant proteins, which entered preliminary clinical studies in the third quarter of 2021.
The Global Head of Sanofi Pasteur, Thomas Triomphe, said, “The acquisition of Origimm further broadens our vaccines R&D pipeline with a first vaccine candidate against acne, a high medical need for millions of teenagers and adults. Welcoming Origimm within Sanofi expands our area of expertise by bringing extensive know-how in the field of skin microbiome and skin immunology. We look forward to unlocking the full potential of this candidate.”
See Top Smart Score Stocks on TipRanks >>
Two months ago, J.P. Morgan analyst Richard Vosser reiterated a Buy rating on the stock with a price target of $118.87, which implies upside potential of 147.3% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 unanimous Buys. The average Sanofi price target of $128.49 implies that the stock has upside potential of 167.4% from current levels.
Sanofi scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform the market expectations. Shares have declined 5.1% over the past year.
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