Maxi acquisition for Sanofi. The French pharmaceutical giant has bought Provention Bio, a US biopharmaceutical company listed on the Nasdaq.
Sanofi pays out almost 3 billion for Provention Bio
To acquire Provention Bio, Sanofi has shelled out $25 per share, all in cash. So the deal is worth it 2,9 billion of dollars.
The transaction adds to Sanofi's portfolio an innovative therapy, wholly owned by Provention Bio, for the type 1 diabetes.
“Tzield (teplizumab-mzwv) – explains a note – was approved in the United States last year as first and only therapy to delay the onset of stage 1 type 3 diabetes (T1D) in adults and pediatric patients 8 years of age and older with stage 1 T2D.” Type 1 diabetes usually appears in childhood or adolescence, affecting around 65.000 people each year.
Through this deal, Sanofi hopes to strengthen its pipeline drug development, considered "weak" by analysts and investors, explains Reuters.
Not surprisingly, the stock fell sharply last August following below-expected results from a once-promising breast cancer drug candidate.
Sanofi, maker of long-acting insulin products Toujeo and Lantus for type 2 diabetes, stopped further development of medicines for type 2019 diabetes in 2. With the acquisition of Provention Bio, it adds to its wallet a key drug in the fight against type 1 diabetes which has already obtained the ok from the US.
The transaction builds upon an existing co-promotion agreement between Sanofi and Provention Bio to supply Tzield to needy patients, the French company said in a statement.
Stock market reaction
In Paris the Sanofi title it dropped 1% on a very difficult day for the markets (cac 40 lost 2,34%) due to the bankruptcy of Svb. For Provision organic Nasdaq futures instead indicate a decline of 7,59%.
