Sanofi buys US haemophilia treatment firm for US$11.6 billion
PARIS: French pharmaceutical firm Sanofi said it had reached an agreement to purchase US biotech company Bioverativ, which specialises in treatments for haemophilia and rare blood disorders, for US$11.6 billion.
Sanofi’s chief executive Olivier Brandicourt said the acquisition “enhances its presence in specialty care and leadership in rare diseases... and creates a platform for growth in other rare blood disorders.”
The purchase should also translate into a boost in profits per share beginning this year, rising to a gain of up to 5 per cent in 2019, Sanofi said in a statement.
Bioverativ has latest-generation treatments for haemophilia, a disorder where blood does not clot properly to stop bleeding.
The haemophilia drugs market is “the largest market in rare diseases”, worth around US$10 billion per year and projected to grow by seven per cent annually over the next five years, Brandicourt said in an audio conference with analysts.
He said he harboured a “strong admiration” for Bioverativ, which is a leader in the field with two drugs, Eloctate and Alprolix, already in the market and estimated overall sales of US$1.2 billion in 2017.
Sanofi said it would be able to help Bioverativ with the research it has underway on the development of other haemophilia treatments, as well as for other rare diseases.
The agreement to purchase all of Bioverativ’s outstanding shares for US$105 each in cash represents a premium of 64 per cent from the closing price on Friday, Sanofi said.
The operation is to start in February and close three months later, Brandicourt said.
But investors were not convinced, sending Sanofi’s shares sharply lower on the Paris stock exchange as they wondered about the wisdom of putting so much money on the table. — AFP