Blueprint has a next-generation systemic mastocytosis treatment, called elenestinib, that Sanofi CEO Paul Hudson told analysts provides an “opportunity to grow through the ‘30s.”
Sanofi has struck a $9.5 billion deal to buy Blueprint Medicines for an approved rare disease drug and an early-stage immunology pipeline.
The deal, $9.1 billion of which is upfront, will give Sanofi ownership of the systemic mastocytosis therapy Ayvakit. Blueprint posted net product revenues of $479 million in 2024 and, after achieving 61% growth in the first quarter, recently raised its guidance for this year to between $700 million and $720 million.
Brian Foard, Sanofi’s head of specialty care, discussed the product’s longer-term prospects on a call with analysts Monday. The launch is “just getting started,” he said. Sanofi’s valuation of Blueprint reflects “extremely low advanced therapy penetration” so far, the executive said, and the company’s belief in the potential of Ayvakit over a long period of time.
Leerink analyst Andy Berens expects that Blueprint’s revenue will hit $1.7 billion in 2030. Other observers have higher hopes, putting the consensus estimate at $2.1 billion. Leerink analyst David Risinger said in a note to investors that Sanofi “will need to deliver on its plans to find and treat more patients.” The ability of Blueprint’s pipeline to deliver blockbuster sales over the long term will be critical, too, Risinger said.
There are unanswered questions about Ayvakit’s growth trajectory. Analysts asked Foard whether he expects the product to lose exclusivity in 2034 or 2040, two years in which different patents on the drug expire. Foard declined to comment beyond saying the company is “extremely comfortable with the IP.”
Blueprint has a next-generation systemic mastocytosis treatment, called elenestinib, that Sanofi CEO Paul Hudson told analysts provides an “opportunity to grow through the ‘30s.” Hudson said elenestinib’s potential is “a big deal.”
Elenestinib is one of two Blueprint pipeline programs that Sanofi named as drivers of the deal. The other candidate is BLU-808, a KIT inhibitor that has applications in a range of inflammatory diseases. The deal features contingent value rights tied to development and regulatory milestones for BLU-808. Hitting the milestones will bring the total value of the deal up to $9.5 billion.
Hudson said Blueprint’s “established presence among key specialist physicians” was another driver of the deal. Under Hudson, Sanofi has invested in a range of immunology candidates. Blueprint’s commercial infrastructure maps on to the capabilities Sanofi expects to need to launch its immunology drugs.
“If you think about where they are today, their call points, uniquely, fit us perfectly,” Foard said. “Think about our pipeline that is being built right now with amlitelimab, with lunsekimig, with TL1A. The call points for those assets are going to be dermatologists, allergists, GIs, which is exactly where Blueprint is today. So, it is going to be a natural build around these individuals.”
Sanofi, which is selling a controlling stake in its consumer-healthcare arm, has struck three takeovers this year. The Blueprint deal joins agreements to buy Dren Bio and Vigil Neuroscience for $600 million and $470 million upfront, respectively. The buyouts have added to a pipeline that Hudson said has endured “a bumpy year in terms of some of the readouts.”
The Blueprint takeover is at the upper end of the valuation range that Hudson has told investors Sanofi will look at. Yet, the buyout, which Sanofi will finance through cash and new debt, has not sated the company’s appetite. Sanofi CFO François-Xavier Roger told analysts the company retains “significant capacity for further business development, particularly in early-stage medicines and vaccines.”
