Sanofi to acquire Bioverativ for $11.6 billion


Sanofi and Bioverativ entered into a definitive agreement, representing an equity value of approximately $11.6 billion

Sanofi to acquire Bioverativ for .6 billion

Bioverativ is a biopharmaceutical company focused on therapies for haemophilia and other rare blood disorders. Sanofi is dedicated to supporting people through their health challenges. The acquisition transaction was unanimously approved by both the Sanofi and Bioverativ Boards of Directors.

"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. 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," said Olivier Brandicourt, Sanofi's CEO.

"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."

John Cox, CEO at Bioverativ, said: "Bioverativ was created to bring meaningful progress to people living with haemophilia and other rare blood disorders, and I am extremely proud of the accomplishments we have made toward that mission over the past year. We have expanded upon the success of Eloctate and Alprolix, which are making a difference in the lives of people with haemophilia every day, and built a pipeline of novel programmes for people with rare blood disorders."

"Sanofi brings proven capabilities and a global infrastructure, which we believe will help to more rapidly expand access to our medicines globally and further our mission of transforming the lives of people with rare blood disorders. 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."

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 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's extended half-life therapies, Eloctate [antihaemophilic factor VIII (recombinant), Fc fusion protein] and Alprolix [coagulation factor IX (Recombinant), Fc fusion protein] for the treatment of haemophilia A and B, respectively, represented the first major advancements in the haemophilia market in nearly two decades when launched.

In 2016, Bioverativ generated $847 million in sales and $41 million in royalties.

Bioverativ currently markets the two products in the US, Japan, Canada and Australia, with plans to expand into additional geographies. The therapies are also commercialised in the European Union and other countries under a collaboration agreement.

Sanofi believes factor replacement therapy will remain the standard of care in haemophilia for many years due to excellent safety and its increasingly superior long-acting profile.

Sanofi will be able to leverage Bioverativ's clinical expertise and existing commercial platform to advance fitusiran, an investigational RNA interference (RNAi) therapeutic for haemophilia A and B, with or without inhibitors. Sanofi recently announced a restructuring of its rare disease alliance with Alnylam Pharmaceuticals, with Sanofi obtaining global development and commercialisation rights to fitusiran.

One of the priorities of Sanofi's 2020 roadmap is to 'Reshape the Portfolio' and focus on areas where the company currently has, or can effectively build, a leadership position.

The addition of Bioverativ supports this priority by adding to its portfolio a differentiated offering of innovative therapies and providing a platform for growth in rare blood disorders, which will expand its presence in specialty care, further strengthen its leadership position in rare diseases and meet the needs of the patient community.

Beyond its two marketed products, Bioverativ's pipeline includes a programme in Phase 3 testing for cold agglutinin disease and early stage research programmes and collaborations in haemophilia, and other rare blood disorders, including sickle cell disease and beta thalassemia.

Sanofi's R&D organisation will support Bioverativ in bringing these important therapies to patients faster. Furthermore, Sanofi's global presence, proven expertise and success in launching specialty medicines, and established footprint in key emerging markets will help Bioverativ fully capitalise on growth opportunities for Bioverativ's current and future products.

Under the terms of the merger agreement, Sanofi will commence a tender offer to acquire all of the outstanding shares of Bioverativ common stock at a price of $105 per share in cash. The $105 per share acquisition price represents a 64 % premium to Bioverativ's closing price on 19 January, 2018.

Sign up for your free email newsletter