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California Biopharma to be Acquired by Sanofi for $3.6 Billion
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The deal is summarized and Principia Biopharma's Q2/20 clinical achievements are recapped in an H.C. Wainwright & Co. report.

In an Aug. 17 research note, H.C. Wainwright & Co. analyst Joseph Pantginis reported that Principia Biopharma Inc. (PRNB:NASDAQ) is to be acquired by partner Sanofi for $100 per share, or $3.6 billion, in cash. Already the transaction received unanimous approval from both companies' board of directors.

Given the acquisition announcement, the financial institution downgraded its rating to Neutral from Buy and decreased its target price on Principia Biopharma to $100 per share from $108.

Also in the research note, Pantginis reviewed the Northern California-headquartered biopharmaceutical firm's primary clinical accomplishments in Q2/20, highlighting it made "significant progress" despite COVID-19-related limitations.

One, Principia Biopharma announced complete data from the Phase 2 Part B BELIEVE-PV trial of rilzabrutinib in pemphigus, at the American Academy of Dermatology's virtual 2020 meeting. "The data demonstrate strong response rates while reducing daily corticosteroid usage over time," Pantginis indicated.

Two, enrollment for the global PEGASUS Phase 3 trial of PRN1008 in patients with moderate to severe pemphigus is on schedule. PEGASUS results are expected in H2/21.

Three, data from the Phase 1/2 study of rilzabrutinib in immune thrombocytopenia were presented at European Hematology Society's annual meeting. "The results demonstrated fast onset and durable responses and provided the basis for the initiation of a Phase 3 pivotal trial," wrote Pantginis. A full data analysis will likely be presented at a medical conference in H2/20, perhaps that of the American Society of Hematology.

Four, two Phase 1 trials evaluating topical PRN473 as a treatment for immune-mediated diseases of the skin were launched in Australia. One was a study testing a single ascending dose as well as multiple doses in healthy volunteers, results for which are expected in H2/20. The other was a challenge study.

Five, Principia Biopharma received a $50 million milestone payment when Sanofi initiated the broad Phase 3 SAR442168 (PRN2246) program in multiple sclerosis. The Phase 2 data, presented by Sanofi and key opinion leaders in an April conference call, "suggest the drug is safe, gets delivered at the right place and works in multiple sclerosis," Pantginis noted.

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Disclosures from H. C. Wainwright, Principia Biopharma, Ratings Revision, August 17, 2020

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

I, Joseph Pantginis, Ph.D., certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst's household has a financial interest in the securities of Principia Biopharma, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of July 31, 2020 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Principia Biopharma, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The Firm or its affiliates did receive compensation from Principia Biopharma, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Principia Biopharma, Inc. during the past 12 months.

The Firm does not make a market in Principia Biopharma, Inc. as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.





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