Sanofi on Monday announced it will acquire Red Bank-based Provention Bio for $25 per share in cash, or a total equity value of about $2.9 billion.
The deal is expected to bolster Sanofi’s portfolio of diabetes medicines by adding Tzield, 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 in adults and pediatric patients aged 8 years and older with Stage 2 T1D.
The acquisition is a strategic fit for Sanofi at the intersection of the company’s growth in immune-mediated diseases and disease-modifying therapies in areas of high unmet need, and its expertise in diabetes.
Sanofi said it expects it to close the acquisition in the second quarter of this year and plans to fund the deal with cash on hand.
“The acquisition of Provention Bio builds on Sanofi’s mission to deliver best- and first-in-class medicines and resonates with our purpose of chasing the miracles of science for the benefit of people. 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,” Olivier Charmeil, executive vice president, general medicines, Sanofi, said.
