Shares of Provention Bio Inc (NASDAQ: PRVB) more than tripled on Monday after Sanofi S.A. (EPA: SAN) confirmed plans of buying the biopharmaceutical company that focused on autoimmune diseases.
The French healthcare giant is willing to pay $25 a share for Provention Bio – a little under 300% premium on its previous close.
Sanofi is making the acquisition primarily to add TZIELD to its portfolio – the only treatment known to delay the onset of Stage 3 type 1 diabetes (T1D). In the press release, Olivier Charmeil (Executive Vice President of Sanofi) said:
By coupling Provention’s transformative innovation with Sanofi’s expertise, we aim to bring life-changing benefits to people at risk of developing Stage 3 T1D. We foresee a seamless integration and execution.
The said deal has an equity value of about $2.9 billion.
Provention Bio secured approval for its TZIELD in the United States last year, following which, it signed an agreement with Sanofi to co-promote the monoclonal antibody in the U.S.
The deal announced today is subject to customary closing conditions. According to Ashleigh Palmer – the Chief Executive of Provention Bio Inc:
Sanofi’s global expertise and commitment to immunology makes them an ideal acquiror and positions our innovative therapy to reach more patients as quickly as possible.
Shares of the Paris-headquartered firm ended slightly down on Monday. The stock market news arrives about a month after Sanofi reported about an 18% year-over-year growth in its fourth-quarter revenue.
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