Sanofi (NASDAQ: SNY) announced on Monday that it has acquired Synthorx (NASDAQ: THOR) for USD 2.5 Billion to boost its immuno-oncology pipeline. Synthorx shares surged by 169% at the open on Monday.

Synthorx is a biotechnology company aimed at developing treatments for cancer and autoimmune diseases. The Company’s lead immuno-oncology product candidate, THOR-707, variant of interleukin-2 (IL-2), is in clinical development in multiple solid tumor types as a single agent and in combination with immune checkpoint inhibitors. 

Under the agreements of the transactions, Sanofi will acquire all of the outstanding shares of Synthorx for USD 68.00 per share in cash. The acquisition was approved by both the Sanofi and Synthorx board of directors.

“This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation, as you will hear at our Capital Markets Day tomorrow, December 10. Additionally, it is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations,” says Paul Hudson, Chief Executive Officer, Sanofi.

With the addition of Synthorx’s THOR-707 to Sanofi’s pipeline will enhance Sanofi’s position in oncology and in immuno-oncology. The Company expects IL-2 to become a foundation of future IO-IO combinations as well as opportunities with Sanofi’s clinical and preclinical oncology assets and molecules that modulate effect T-cells and natural killer cells. 

“Synthorx’s exceptionally novel discovery platform has already produced a molecule that has the potential to become a foundation of the next generation of immuno-oncology combination therapies. By selectively expanding the numbers of effector T-cells and natural killer cells in the body, THOR-707 can be combined with our current oncology medicines and our emerging pipeline of immuno-modulatory agents for treating cancer. Moreover, Synthorx’s pipeline of engineered lymphokines has great promise not only for oncology but also for addressing many autoimmune and inflammatory diseases. ” says John Reed, M.D., Ph.D., Global Head of Research & Development at Sanofi.