Sanofi in pact to acquire US biotech haemophila drugs maker Bioverativ for 11.6 bn
22 January 2018
French healthcare group Sanofi today said it has struck a deal to buy US maker of haemophilia drugs Bioverativ for $11.6 billion, in an all-cash deal.
The deal values Bioverativ, a 2017 spin-out of biotech giant Biogen, at $105 per share or 64 per cent to its closing price on Friday.
Sanofi will acquire all of the outstanding shares of Bioverativ for $105 per share in cash, representing an equity value of approximately $11.6 billion (on a fully diluted basis). The transaction has been unanimously approved by the boards of Sanofi and Bioverativ.
Sanofi plans to finance the transaction with a combination of cash on hand and through new debt to be raised.
The acquisition is Sanofi's largest in seven years, since its acquisition of US biotech company Genzyme for around $20 billion in 2011. Since then the Paris-based company failed to acquire cancer therapies specialist Medivation, which was bagged by Pfizer in 2016, and Swiss biotech company Actelion, which was bought by Johnson & Johnson last year.
''With Bioverativ, a leader in the growing haemophilia 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,'' said Olivier Brandicourt, Sanofi's Chief Executive Officer. ''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.''
With approximately $10 billion in annual sales and 181,000 people affected worldwide, haemophilia represents the largest market for rare diseases and is expected to grow above 7 per cent per year through 2022. Treatment options for patients are shaped by shifting standards of care worldwide and include prophylaxis and extended half-life products, and the development and adoption of innovative therapies.
Bioverativ currently markets Eloctate and Alprolix for the treatment of haemophelia in the United States, Japan, Canada and Australia, and plans to expand into additional geographies. The therapies are also commercialised in the European Union and other countries under a collaboration agreement.