Bioverativ Inc Stock Gets 64% Premium in Acquisition by Sanofi
Biotech company Bioverativ Inc (NASDAQ:BIVV) is being acquired by Sanofi SA (ADR) (NYSE:SNY) for $11.6 billion in cash. The deal puts a 64% premium on the price of BIVV stock, which was up 61% in pre-market activity at 5:15 a.m. today.
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Bioverativ focuses on the discovery, research, development, and commercialization of innovative therapies for the treatment of hemophilia and other blood disorders. Last week, InvestorPlace contributor, Swarup Gupta of Zacks Investment Research, highlighted BIVV as one of four great healthcare stocks to buy ahead of earnings.
Sanofi has agreed to buy all of the outstanding shares of Bioverativ for $105 per share. BIVV stock closed Friday at $64.11.
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The deal could be a sign of more mergers and acquisitions activity in the biotech sector, with predictions by some experts of renewed interest by big pharma companies om smaller firms. Sanofi has been noticeably absent from biotech deal making in recent years. Its last major transaction was the 2011 takeover of U.S. biotech company Genzyme for around $20 billion. Sanofi lost out on buying California-based cancer specialist Medivation to Pfizer in 2016, and also missed acquiring Swiss biotech company Actelion, which was bought by Johnson & Johnson last year, according to Reuters.
“With Bioverativ, a leader in the growing hemophilia market, Sanofi enhances its presence in specialty care and leadership in rare diseases, in line with its 2020 Roadmap, and creates a platform for growth in other rare blood disorders. Together, we have a great opportunity to bring innovative medicines to patients worldwide, building on Bioverativ’s success in driving new standards of care with its extended half-life factor replacement therapies,” commented Olivier Brandicourt, Sanofi’s CEO, in a press release. “Combined, we will continue to leverage our scientific know-how, disciplined focus and development expertise that best position us to drive value for our shareholders and create breakthrough treatments for patients.”
BIVV stock has been trading for less than a year since the company was formed as a spin-off from Biogen Inc (NASDAQ:BIIB). As of Friday, the shares had gained more than 40% since their debut in January 2017.
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