Sanofi buys mRNA developer for $3.2 billion

Shares of Translate Bio Inc. TBIO,
rose 29.8% in premarket trading on Tuesday after Sanofi fr:sny
said it will spend $3.2 billion to buy the developer of messenger RNA (mRNA) technologies. Sanofi’s US-listed shares fell 0.1% in premarket trading. “Full ownership of a platform allows us to develop additional opportunities in the rapidly evolving mRNA space,” Sanofi CEO Paul Hudsons said in a statement. Investors are paying much more attention to mRNA developments since the mRNA COVID-19 vaccines developed by Moderna Inc. mRNA,
and BioNTech SE BNTX,
/Pfizer Inc. PFE,
be authorized. Sanofi and Translate are also developing an mRNA COVID-19 vaccine; the experimental inclusion is currently in a phase 1/2 clinical trial. “Given the early stage of TBIO’s platform and the company’s recent move into vaccines, the deal terms seem favorable to SNY and reasonable for TBIO,” Geoffrey Porges of SVB Leerink told investors on Tuesday. This year, Translate’s share is up 58.1% this year and Sanofi is up 5.5%. The S&P 500 SPX,
won 17.0%.