Goldman Sachs: Whale swallowing Blueprint (BPMC.US) is expected to resolve the “patent cliff” crisis and maintain the SNY.US (SNY.US) target price of $67

The Zhitong Finance App learned that SNY.US (SNY.US) recently announced that it plans to acquire Blueprint Medicines (BPMC.US) for 9.1 billion US dollars. Goldman Sachs said in this regard that the deal aims to help Sanofi fill the profit gap of its core product Dupixent after the patent expires in 2031/2 by integrating Blueprint's rare disease and immunology pipeline assets. As a result, the bank maintains Sanofi's “neutral” rating with a target price of 117 euros (ADR $67).

Goldman Sachs stated in a report that under the terms, Sanofi will buy Blueprint for $129 per share in cash (27% premium over the May 30 closing price), with a prepayment amount of US$9.1 billion. If BluePrint's immunology candidate BLU-808 is successfully developed, shareholders can also receive two additional contingent value rights (CVR) of $2 and $4 per share, with a total transaction value of up to US$9.5 billion. The deal is expected to close in the third quarter of 2025.

The core assets of this acquisition include the approved tyrosine kinase inhibitor Ayvakit (used to treat rare diseases associated with mast cells) and the drug BLU-808 (for non-mutant KIT, indicated for immune diseases such as chronic urticaria and allergic asthma). According to Visible Alpha's forecast, Ayvakit's peak sales in 2033 could reach 2.35 billion euros (gross margin of up to 95%); BLU-808's peak sales in 2033 are expected to reach 2.7 billion US dollars (1.7 billion euros).

Goldman Sachs said that Sanofi already has a rare disease drug portfolio through its Genzyme platform, and this acquisition will further strengthen its position in this field and help build immunology pipelines as an important step to replace Dupixent in the long term. Dupixent is Sanofi's blockbuster drug, but its patent expires in 2031/32. Acquired high-margin assets (such as Ayvakit) are expected to contribute sales and cover the profit gap after the patent expires.

Furthermore, the bank's analysts pointed out that these assets are highly compatible with Sanofi's strategic layout: on the one hand, it uses the Genzyme platform's rare disease infrastructure, and on the other hand, it fits the immunology field that the company has focused on developing over the past 3-4 years.