Sanofi to acquire Provention Bio for $2.9B
Sanofi, a French healthcare and pharmaceutical company, is acquiring American biopharmaceutical Provention Bio in a deal valued at $2.9 billion.
Provention Bio is focused on intercepting and preventing immune-mediated diseases including type 1 diabetes (T1D), and its TZIELD (teplizumab-mzwv) therapy was approved in the United States last year. The therapy is the first and only therapy to delay the onset of Stage 3 T1D n adults and pediatric patients aged 8 years and older with Stage 2 T1D.
According to Sanofi, the deal is a strategic fit for the company, and TZIELD adds an innovative, fully owned, first-in-class therapy to its core asset portfolio in general medicine. Plus, the therapy adds to Sanofi’s strategic shift toward products with a differentiated profile.
“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,” Olivier Charmeil, executive vice president of general medicines at Sanofi, said in a statement. “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. Any additional indications, approvals and pipeline assets only serve to further our excitement. Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution.”
TZIELD is seen as having the potential as a transformative therapy in the U.S. and globally, potentially delaying the onset of Stage 3 T1D for some of the 65,000 people diagnosed every year. Stage 3 T1D has high health risks, including diabetic ketoacidosis, which can be life threatening. Patients who progress to Stage 3 T1D eventually require insulin injections for life. The therapy is currently approved in adults and pediatric patients aged 8 years and older with Stage 2 T1D.
Sanofi will maximize TZIELD’s potential through its capabilities. The two companies already have a co-promotion agreement that is delivering TZIELD to patients in need of this immune-mediated therapy.
TZIELD is also in late-stage clinical development for the treatment of pediatric and adolescent patients that are newly diagnosed with clinical T1D (Stage 3). The phase 3 trial, dubbed PROTECT, is underway, with top-line results expected in the second half of 2023. According to Sanofi, there are additional opportunities for TZIELD, including re-dosing and formulations as well as new therapeutic indications.
Under terms of the deal, Sanofi will acquire Provention Bio for $25 per share in case, for a total equity value of approximately $2.9 billion. Sanofi currently expects to complete the acquisition in the second quarter of 2023.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."