SAN DIEGO - Inhibrx, Inc. (NASDAQ: INBX) has received approval from its stockholders for the sale of assets primarily related to INBRX-101, a therapy in development for alpha-1 antitrypsin deficiency (AATD), to global healthcare company Sanofi (NASDAQ:SNY). The approval, granted at a special meeting, paves the way for a merger that will see Sanofi acquire all outstanding shares of Inhibrx.
The transaction terms, initially announced on January 23, 2024, stipulate that each Inhibrx stockholder will receive $30.00 per share in cash and one contingent value right per share, which could yield an additional $5.00 upon reaching a regulatory milestone. Furthermore, as of May 17, 2024, Inhibrx stockholders will receive one share of the newly formed Inhibrx Biosciences, Inc. for every four shares of Inhibrx they own.
Inhibrx Biosciences will be a publicly traded entity housing the non-101 assets and liabilities, including INBRX-105, INBRX-106, INBRX-109, and the company's discovery pipeline. Sanofi will retain an 8% equity interest in the new company, which will also be funded with a minimum of $200 million in cash.
As part of the agreement, Sanofi will assume and retire Inhibrx's outstanding third-party debt. The completion of the transactions is expected in the coming days, subject to customary closing conditions. Following the closure, Inhibrx's common stock will be delisted from The Nasdaq Global Market, and the company will cease filing periodic reports with the SEC.
This strategic move allows Sanofi to enhance its portfolio with INBRX-101, which is currently in a registrational trial, while Inhibrx focuses on advancing its remaining therapeutic candidates. The final voting results of the special meeting will be detailed in a Current Report on Form 8-K filed with the SEC.
Inhibrx is known for its work in oncology and orphan diseases, utilizing protein engineering platforms to address complex disease biology. Sanofi, on the other hand, is recognized for its global healthcare innovations and commitment to improving lives through science.
InvestingPro Insights
As Inhibrx, Inc. (NASDAQ: INBX) navigates a significant transition with the sale of assets to Sanofi, the company's financial metrics and market performance offer a mixed picture for investors. Inhibrx's market capitalization stands at $1.79 billion, reflecting investor confidence to some extent. However, the company's financial health shows signs of struggle, with a notably high Price / Book ratio of 154.79 as of the last twelve months ending Q1 2024. This suggests a premium valuation compared to the company's book value, which could be a point of concern for value-focused investors.
On the growth front, Inhibrx has reported a robust revenue growth rate of 39.3% for the same period, indicating potential in its research and development endeavors. Despite this growth, Inhibrx has not yet achieved profitability, with a negative P/E ratio of -6.6 and analysts not expecting profitability within the current year. Additionally, the company's gross profit margin stands at an alarming -12132.47%, underscoring the "InvestingPro Tip" that Inhibrx suffers from weak gross profit margins.
Investors might also note the "InvestingPro Tip" regarding the company's stock price movements, which have been quite volatile. This is evidenced by a significant six-month price total return of 66.46%, followed by a year-to-date decline of -10.03%. Such volatility could be a factor for risk-averse investors to consider.
Inhibrx's strategic maneuvers and its potential for future growth can be further explored with additional insights from InvestingPro. There are 11 more "InvestingPro Tips" available, which can provide a deeper understanding of the company's financial health and market standing. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to these valuable insights.
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