Sanofi on Monday announced that it will acquire the Red Bank-based Prevention Bio for $25 per share in cash, or a total equity value of approximately $2.9 billion.
The deal is expected to strengthen Sanofi’s portfolio of diabetes drugs by adding Tzield, which was approved in the US 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 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 the best and first-in-class medicines and fulfills our mission to pursue the miracles of science for the benefit of people. By combining Provention Bio’s breakthrough with Sanofi’s expertise, we aim to bring life-changing benefits to people at risk of developing Stage 3 type 1 diabetes,” said Olivier Charmeil, executive vice president, general medicines, Sanofi.