Sanofi agrees to $2.9B purchase of Provention Bio in bid to boost diabetes drug
By Scott Kanowsky
Investing.com -- Sanofi SA (EPA:SASY) agreed to purchase US-based pharmaceutical firm Provention Bio (NASDAQ:PRVB) in a deal worth approximately $2.9 billion, as the French drugmaker looks to boost its general medicines portfolio with a US-approved type 1 diabetes drug.
In a statement, Sanofi said the deal, which is expected to close in the second quarter of 2023, will give it full ownership of TZIELD, a treatment used to delay the onset of Stage 3 type 1 diabetes in adults and pediatric patients aged 8 and older.
The move also helps address recent investor criticism over Sanofi's pipeline of drugs, although growth in the company's asthma and eczema medicines has remained strong.
Sanofi executive vice president Olivier Charmeil said the agreement, which will see it buy Provention Bio for $25 per share, builds on a previous partnership between the two groups.
"By coupling Provention Bio’s transformative innovation with Sanofi's expertise, we aim to bring life-changing benefits to people at risk of developing Stage 3 type 1 diabetes. Any additional indications, approvals and pipeline assets only serve to further our excitement," Charmeil added.
Provention stock jumped by more than 258% following the announcement, while Paris-listed shares in Sanofi edged lower.
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