French pharmaceutical firm Sanofi SA (EPA: SAN) have announced the purchase of biotechnology firm Synthorx Inc (NASDAQ: THOR) in an update on Monday.

Sanofi S.A. is a French multinational pharmaceutical company headquartered in Paris, France, as of 2013 the world’s fifth-largest by prescription sales. The company was formed as Sanofi-Aventis in 2004, by the merger of Aventis and Sanofi-Synthélabo, which were each the product of several previous mergers.

Shares of Sanofi currently trade at €82 (-0.74%). 9/12/19 14:40BST.

The firm said that the deal would be a cash only deal valued at $2.5 billion, as it steps up its effort to push the cancer field drugs.

At the end of October, Sanofi reported strong sales growth €9.5 billion, up 1.1%. Its notable highlights included; a 19.5% jump in sales from Sanofi Genzyme, driven by the ‘strong’ uptake of its Dupixent product; emerging markets sales growth of 9.7% and CHC sales growth of 0.4%.

Today, the pharmaceutical giant has made a statement to global competitors about its intentions to dominate the global market.

Sanofi has offered to buy all the outstanding shares of Synthorx common stock for $68 per share in cash, or a 172% premium to Synthorx’s closing price on Dec. 6, 2019.

“This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation, as you will hear at our Capital Markets Day tomorrow, December 10,” Sanofi Chief Executive Paul Hudson said in a statement.

“Additionally it is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations.”

Synthorx is a linical-stage biotech company focused on therapies for people with cancer and auto-immune disorders, according to the company’s website.

The acquisition is expected to be completed in the first quarter of 2020, and should please shareholders of both parties.

“The acquisition price is full at a 172% premium to Synthorx Dec. 6 close price and is a lot to pay for an early stage pipeline (lead drug THOR-707 is in phase 1 trial,” Liberum analysts said in a note.

Sanofi is going through a strategy and operational overhaul under Hudson, who took over as CEO on September 1.

“I am bringing a little sense of urgency and prioritization. I have set a tone already that we can move a little bit faster,” Hudson told reporters in October.

“I think we have the right level of resources although perhaps not always in the right place.”

The move comes as rivals have been making ground in the industry. It seems that Sanofi have made this move in order to keep up with the pack.

In the US, titan Pfizer have seen their third quarter profits beat market expectations and exceed many analyst reports in an impressive trading update.

Net income accountable to Pfizer’s shareholders rose to $7.68 billion, or $1.36 per share, in the quarter, from $4.11 billion, or 69 cents per share, a year earlier.

Additionally, FTSE100 listed GlaxoSmithKline  saw their shares in green after the firm lifted their annual profit forecast.

The acquisition made by Sanofi seems like a shrewd piece of business and certainly shareholders should remain optimistic as there could be long term benefits if both firms exploit their specialities.