Sanofi to buy Bioverativ for $11.6 Billion

Sanofi SA (NYSE: SNY) announced on Monday it has entered into an agreement to acquireBioverativ Inc. (NASDAQ: BIVV) for $11.6 billion or $105 per share. Bioverativ shares were up 62 percent during Monday’s pre-market hours.

“With Bioverativ, a leader in the growing hemophilia market, Sanofi enhances its presence in specialty care and leadership in rare diseases,” said Olivier Brandicourt, Sanofi’s Chief Executive Officer.

“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,” added Brandicourt.

The acquisition comes after Sanofi’s failed takeover attempt of Medivation and Actelion in 2016. This marks Brandicourt’s biggest acquisition in the past seven years. Sanofi is has since changed its direction for its portfolio, entering into the hemophilia market.

The addition supports Sanofi’s project to “Reshape the portfolio” and help expand its presence in specialty care and bolster its position in rare diseases. Sanofi will become a leader in the hemophilia market and a platform for expansion into other rare blood disorders.

Bioverativ has two products treating hemophilia, which is only currently available in the United States, Japan, Canada, and Australia, but has plans to expand. The therapies are also commercialized in the European Union with other countries under collaboration agreement.

Hemophilia treatments record approximately $10 billion in annual sales affecting 181,000 people worldwide. Hemophilia represents the largest market for rare diseases and is expected grow 7 percent through 2022.

Sanofi says it will be able to leverage Bioverativ’s clinical expertise and platform to advance fitusiran, an investigational RNA interference (RNAi) therapeutic for hemophilia A and B, with or without inhibitors.

Bioverativ Chief Executive Officer, John Cox added, “Our Chairman, Brian Posner, our entire Board and I strongly believed our spin-off would create meaningful value for shareholders, and this transaction delivers tremendous value for the shareholders who have invested in and supported our mission.”

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