French health-care group Sanofi has agreed to buy U.S. hemophilia specialist Bioverativ for $11.6 billion, its biggest deal for seven years along which has a major play to strengthen its presence in treatments for rare diseases.
Several analysts said the deal looked expensive, given uncertainties inside the hemophilia market due to the arrival of brand-new drug treatments, along with Sanofi shares fell 4 percent on Monday, the worst performance on France’s benchmark CAC-40 index.
The move comes at a time of renewed interest by large drugmakers in smaller biotech firms, with Celgene also announcing a $9 billion deal to buy Juno Therapeutics, along with predictions by some experts which 2018 will see a substantial pick-up in mergers along with acquisitions.
Sanofi has agreed to buy all of the outstanding shares of Bioverativ for $105 apiece in cash, a premium of 64 percent to Bioverativ’s closing cost on January 19.
Bioverativ, a maker of hemophilia drugs, was separated via Biogen early last year. Its shares surged to $104 in early U.S. trading.
The agreed transaction marks Sanofi’s successful return to deal-producing after its failure to land major takeovers in recent years. the item is actually its biggest acquisition since the 2011 takeover of U.S. biotech company Genzyme for around $20 billion.
Sanofi lost out on buying California-based cancer specialist Medivation to Pfizer in 2016, along with also missed acquiring Swiss biotech company Actelion, which was bought by Johnson & Johnson last year.
“With Bioverativ, we welcome a leader inside the growing hemophilia market,” Sanofi Chief Executive Olivier Brandicourt said.
The market dealing with treatments for hemophilia is actually an important one which is actually evolving rapidly as a brand-new drug via Roche alterations the landscape along with gene therapy holds out the promise of a possible one-time cure.
Sanofi said the sector had around $10 billion in annual sales, with 181,000 people affected worldwide, along with hemophilia represented the largest market for rare diseases, set to grow by more than 7 percent per year through to 2022.