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Sanofi (NASDAQ:SNY) is acquiring Red Bank, N.J.- based diabetes drugmaker Provention Bio (NASDAQ:PRVB) for ~$2.9B.
Under the agreement, Sanofi will start a cash tender offer to acquire all outstanding shares of Provention for $25 per share in cash, reflecting a total equity value of ~$2.9B.
Through the acquisition, Sanofi will inherit Provention’s Tzield (teplizumab-mzwv), which was approved in the U.S. last year as the first and only therapy to delay the onset of Stage 3 type 1 diabetes (T1D) in patients eight years and older with Stage 2 T1D, as per the company.
The French pharma giant will also get Provention’s pipeline assets in early development in immune-mediated diseases.
Sanofi noted that the transaction is a strategic fit for the company growth in immune-mediated diseases and disease-modifying medicines for high unmet need, and its expertise in diabetes.
“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. Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution,” said Olivier Charmeil, executive vice president, General Medicines, Sanofi.
Sanofi plans to fund the transaction with available cash.
The completion of the tender offer is subject to conditions, including tender of Provention shares, which together with stock already owned by Sanofi or its affiliates, represents at least a majority of the outstanding stock.
The transaction is also subject to U.S. anti trust clearance, among other things.
Sanofi expects to complete the transaction in Q2 2023.
PRVB +262.69% to $24.30 premarket March 13
SNY +0.30% to $47.42 premarket
Image and article originally from seekingalpha.com. Read the original article here.