UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~WASHINGTON~~Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) ~~of the Securities Exchange Act of 1934~~

~~Date~~ of ~~Report~~the ~~(Date~~Securities ofExchange ~~earliest~~Act ~~event~~of ~~reported): August 6, 2020~~1934

Date of Report (Date of earliest event reported): August 16, 2020

PRINCIPIA BIOPHARMA INC.

(Exact name of ~~Registrant~~registrant as ~~Specified~~specified in ~~Its~~its ~~Charter~~charter)

Delaware	~~001-38653~~	26001-~~3487603~~38653	26-3487603
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification No.)
220 East Grand Avenue South San Francisco, California		94080
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (650) 416-7700

220 East Grand Avenue

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 416-7700

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General ~~Instructions~~Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Common Stock, Par Value $0.0001 per share

PRNB

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

~~Securities~~Item ~~registered~~1.01 ~~pursuant~~Entry tointo ~~Section~~a ~~12(b)~~Material ofDefinitive ~~the Act:~~Agreement.

Title of each class	Trading Symbol(s)		Name of each exchange on which registered
Common Stock, Par Value $0.0001 Per Share	PRNB		The Nasdaq Global Select Market

On August 16, 2020, Principia Biopharma Inc., a Delaware corporation (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Sanofi, a French société anonyme (“Parent”), and Kortex Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Parent (“Purchaser”).

~~Item~~Pursuant 2to the Merger Agreement, upon the terms and subject to the conditions thereof, Purchaser will commence a cash tender offer (the “Offer”), to acquire all of the outstanding shares of common stock of the Company, $0.~~02Results~~0001 par value per share (the “Shares”), at a purchase price of ~~Operations~~$100.00 per Share in cash (the “Offer Price”), without interest and ~~Financial~~subject ~~Condition~~to any withholding of taxes required by applicable legal requirements.

OnThe ~~August~~obligation 6of Purchaser to purchase Shares tendered in the Offer is subject to the conditions set forth in the Merger Agreement, ~~2020~~including that the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn, ~~Principia~~when ~~Biopharma~~considered ~~Inc.~~together with all other Shares (~~the~~if ~~“Company”~~any) ~~issued~~otherwise abeneficially ~~press~~owned ~~release~~by ~~announcing~~Parent ~~our~~or ~~financial~~any ~~results~~of ~~for~~its wholly owned subsidiaries (including Purchaser) (but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been received, as defined by Section 251(h)(6) of the ~~second~~of ~~quarter~~the ~~ended~~Delaware ~~June~~General 30Corporation Law (the “DGCL”)), ~~2020.~~would ~~The~~represent ~~full~~one ~~text~~more than 50% of the ~~press~~total ~~release~~number isof ~~attached~~Shares ~~hereto~~outstanding asat ~~Exhibit~~the ~~99.1~~time ~~and~~of isthe ~~incorporated~~expiration ~~herein~~of bythe ~~reference~~Offer (the “Minimum Condition”).

~~All~~Following the completion of the ~~information~~Offer ~~furnished~~and subject to the satisfaction or waiver of certain conditions set forth in ~~this~~the ~~Item~~Merger ~~2.02~~Agreement, Purchaser will merge with and ~~Exhibit~~into ~~99.1~~the ofCompany, ~~this~~with ~~Current~~the ~~Report~~Company onsurviving ~~Form~~as ~~8-K~~a ~~shall~~wholly ~~not~~owned besubsidiary ~~deemed~~of toParent be(the “~~filed~~Merger”). ~~for~~Purchaser ~~purposes~~will ofeffect ~~Section~~the 18Merger after consummation of the ~~Securities~~Offer ~~Exchange~~pursuant ~~Act~~to Section 251(h) of ~~1934,~~the asDGCL. ~~amended~~At the effective time of the Merger (the “~~Exchange~~Effective ~~Act~~Time”), orthe ~~otherwise~~Shares ~~subject~~then tooutstanding (other than Shares (a) held by the ~~liabilities~~Company of(or ~~that~~in ~~Section~~the Company’s treasury), ~~and~~Parent, ~~shall~~Purchaser, ~~not~~any beother ~~incorporated~~direct byor ~~reference~~indirect inwholly ~~any~~owned ~~filing~~subsidiary ~~made~~of Parent, or by stockholders of the Company ~~under~~who ~~the~~have ~~Securities~~properly ~~Act~~exercised and perfected their statutory rights of ~~1933,~~appraisal asunder ~~amended~~Delaware law, or ~~the~~(b) irrevocably ~~Exchange~~accepted ~~Act,~~for ~~except~~purchase asin ~~shall~~the Offer) will each be ~~expressly~~converted ~~set~~into ~~forth~~the byright ~~specific~~to ~~reference~~receive an amount in ~~such~~cash aequal ~~filing~~to the Offer Price (the “Merger Consideration”), without interest and subject to any withholding of taxes required by applicable legal requirements.

~~Item~~Each 9of the Company’s stock options (the “Company Options”) that is outstanding as of immediately prior to the Effective Time shall accelerate and become fully vested and exercisable effective immediately prior to, and contingent upon, the Effective Time.~~01Financial~~ ~~Statements~~As of the Effective Time, each Company Option that is then outstanding and ~~Exhibits~~unexercised shall be cancelled and converted into the right to receive cash in an amount equal to the product of (i) the total number of Shares subject to the vested Company Option immediately prior to the Effective Time (taking into account any acceleration of vesting), multiplied by (ii) the excess (if any), of (x) the Merger Consideration over (y) the exercise price payable per Share under such Company Option. Any Company Option that has an exercise price that equals or exceeds the Merger Consideration shall be canceled for no consideration. The Company’s repurchase rights with respect to any Shares previously issued upon the “early exercise” of Company Options will terminate immediately prior to and contingent upon the Effective Time.

Exhibit Number		Description
99.1		Press Release issued by Principia Biopharma Inc. dated August 6, 2020
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

At the Effective Time, the warrants to purchase Shares (the “Company Warrants”) will be converted into the right to receive the Merger Consideration less the applicable exercise price in respect of the Shares underlying such Company Warrants, and the holders of such Company Warrants, in lieu of Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented by the Company Warrant, will be entitled only to receive the Merger Consideration less the applicable exercise price in respect of each share of Company Common Stock underlying such Company Warrants and will have no other rights pursuant to each such holder’s ownership of such Company Warrants.

The Merger Agreement includes representations, warranties and covenants of the parties customary for a transaction of this nature. From the date of the Merger Agreement until the earlier of the Effective Time and the termination of the Merger Agreement, the Company has agreed, subject to certain exceptions, to operate its business in the ordinary course consistent with past practice and has agreed to certain other operating covenants, as set forth more fully in the Merger Agreement. The Company has also agreed not to directly or indirectly solicit or encourage discussions or negotiations with any third party regarding acquisition proposals. Notwithstanding these restrictions, the Company may under certain circumstances provide, pursuant to an acceptable confidentiality agreement, information to and engage in or otherwise participate in discussions or negotiations with third parties with respect to an unsolicited, bona fide written alternative acquisition proposal that the board of directors of the Company has determined in good faith, after consultation with its financial advisors and outside legal counsel, constitutes or could reasonably be expected to lead to a Superior Offer (as defined in the Merger Agreement) and that failure to take such action would be inconsistent with the board’s fiduciary duties under applicable legal requirements.

The Merger Agreement includes a remedy of specific performance for the Company, Parent and Purchaser. The Merger Agreement also includes customary termination provisions for both the Company and Parent and provides that, in connection with the termination of the Merger Agreement under specified circumstances, including termination by the Company to accept and enter into a definitive agreement with respect to an unsolicited Superior Offer, the Company will be required to pay a termination fee of an amount in cash equal to $128,828,000 (the “Termination Fee”). Any such termination of the Merger Agreement by the Company is subject to certain

conditions, including the Company’s compliance with certain procedures set forth in the Merger Agreement, a determination by the board of directors of the Company that the failure to take such action would be inconsistent with the board of directors’ fiduciary duties to the Company’s stockholders under applicable legal requirements and the payment of the Termination Fee by the Company.

The foregoing description of the Merger Agreement is not complete and is qualified in its entirety by reference to the Merger Agreement, which is attached as Exhibit 2.1 to this report and incorporated herein by reference. The Merger Agreement and the foregoing description of such agreement have been included to provide investors and stockholders with information regarding the terms of such agreements. The assertions embodied in the representations and warranties contained in the Merger Agreement are qualified by information in confidential disclosure schedules delivered by the Company to Parent and Purchaser in connection with the signing of the Merger Agreement. Moreover, certain representations and warranties in the Merger Agreement were made as of a specified date, may be subject to a contractual standard of materiality different from what might be viewed as material to stockholders, or may have been used for the purpose of allocating risk between the parties to the Merger Agreement. Accordingly, the representations and warranties in the Merger Agreement should not be relied on by any persons as characterizations of the actual state of facts and circumstances of the Company at the time they were made and investors should consider the information in the Merger Agreement in conjunction with the entirety of the factual disclosure about the Company in the Company’s public reports filed with the SEC. Information concerning the subject matter of the representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures.

Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 16, 2020, in connection with the approval of the Merger Agreement, the board of directors of the Company approved and authorized the Company to, with respect to each of Mr. Martin Babler, the Company’s President and Chief Executive Officer, Dr. David M. Goldstein, the Company’s Chief Scientific Officer, Dr. Dolca Thomas, the Company’s Chief Medical Officer, and certain other individuals, amend each such individual’s respective Change in Control and Severance Agreement (the “Change in Control Agreements”) to provide for a reimbursement by the Company of an amount so that on an after-tax basis such individual retains an amount equal to any excise tax imposed under Section 4999 of the Internal Revenue Code in connection with the Merger (provided that the Company’s obligation under these agreements cannot exceed $10 million in the aggregate). Such reimbursement provision shall amend, restate and supersede the prior provisions set forth in such Change in Control Agreements related to Section 4999 of the Internal Revenue Code.

Item 8.01

Other Events.

On August 17, 2020, the Company and Parent issued a joint press release announcing the execution of the Merger Agreement as described above. A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits


Exhibit Number		Description

2.1*		Agreement and Plan of Merger, dated as of August 16, 2020, by and among Principia Biopharma Inc., Sanofi and Kortex Acquisition Corp.

99.1		Joint Press Release of Sanofi and Principia Biopharma Inc., dated August 17, 2020

104		Cover Page Interactive Date File (embedded within the Inline XBRL document)

*	Schedules omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request.

Forward-Looking Statements

This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential plans, and future performance. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “will be” and similar expressions. Although Company management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking

information and statements. These risks and uncertainties include among other things, risks relating to the ability to complete and the timing of completion of the transactions contemplated by the Merger Agreement including the parties’ ability to satisfy the conditions to the consummation of the Offer and the other conditions set forth in the Merger Agreement, the risk that stockholder litigation in connection with the proposed transaction may result in significant costs and the possibility of any termination of the Merger Agreement; the uncertainties inherent in research and development, including future clinical data and analysis, regulatory obligations and oversight by regulatory authorities, such as the FDA, and risks associated with the Company’s intellectual property. The forward-looking statements contained in this communication are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Actual results may differ materially from current expectations because of risks associated with uncertainties as to the timing of the tender offer and the merger; the risk that competing offers or acquisition proposals will be made; the possibility that various conditions to the consummation of the tender offer or the merger may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the tender offer or the merger; the effects of disruption from the transactions of the Company’s business and the fact that the announcement and pendency of the transactions may make it more difficult to establish or maintain relationships with employees or vendors. The risks and uncertainties may be amplified by the COVID-19 pandemic, which has caused significant economic uncertainty. The extent to which the COVID-19 pandemic impacts the Company’s businesses, operations, and financial results, including the duration and magnitude of such effects, will depend on numerous factors, which are unpredictable, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. While the list of factors presented here is representative, no list should be considered a statement of all potential risks, uncertainties or assumptions that could have a material adverse effect on the companies’ consolidated financial condition or results of operations. The foregoing factors should be read in conjunction with the risks and cautionary statements discussed or identified in in the Company’s public filings with the SEC from time to time, including the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company’s stockholders and investors are cautioned not to unduly rely on these forward-looking statements. The forward-looking statements speak only as of the date hereof and, other than as required by applicable law, the Company does not undertake any obligation to update or revise any forward-looking information or statements.

About the Offer

The Offer for the outstanding shares of Company common stock referenced in this communication has not yet commenced. This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities, nor is it a substitute for the tender offer materials that will be filed with the SEC upon the commencement of the tender offer. At the time the tender offer is commenced, Sanofi and Purchaser will file a Tender Offer Statement on Schedule TO with the SEC, and the Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer.

THE OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 WILL CONTAIN IMPORTANT INFORMATION. COMPANY STOCKHOLDERS ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE (AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME) BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF PRINCIPIA SECURITIES SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SECURITIES.

The Offer to Purchase, the related Letter of Transmittal and certain other offer documents, as well as the Solicitation/Recommendation Statement, will be made available to all stockholders of the Company at no expense to them. The Tender Offer Statement and the Solicitation/Recommendation Statement will be available free of charge at the SEC’s web site, http://www.sec.gov, or under the “Investors & Media” section of Principia’s website, www.principiabio.com. Free copies of these materials and certain other offering documents will be sent to the Company’s stockholders by the information agent for the tender offer.

Additional Information

In addition to the Solicitation/Recommendation Statement that the Company will file, the Company files annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by the Company at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The Company’s filings with the SEC are also available to the public from commercial document-retrieval services and the SEC’s website at http://www.sec.gov.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	~~PRINCIPIA BIOPHARMA INC.~~		PRINCIPIA BIOPHARMA INC.
Date: August 6, 2020	By:	/s/ Christopher Y. Chai
Date: August 17, 2020			By:	/s/ Roy Hardiman
		Christopher Y. Chai
				Roy Hardiman
		Chief Financial Officer
				Chief Business Officer

Filing Compare · Principia Biopharma Inc.