Bioverativ chief executive John Cox, said: "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".
The agreement to purchase all of Bioverativ's outstanding shares for $105 each in cash represents a premium of 64 percent from the closing price on January 19, Sanofi said. The company's stock had a trading volume of 712,830 shares, compared to its average volume of 788,887. TCI Wealth Advisors Inc. acquired a new stake in shares of Bioverativ in the third quarter valued at about $186,000.
Following the successful completion of the tender offer, a Sanofi unit will merge with Bioverativ, and the remaining shares not tendered in the offer will be converted into the right to receive the same $105 per share in cash. Acadian Asset Management LLC now owns 1,246,815 shares of the biotechnology company's stock worth $67,229,000 after purchasing an additional 441,084 shares in the last quarter. Eloctate, approved by the FDA in 2014, became the first recombinant hemophilia A therapy with prolonged circulation in the body and the only treatment indicated to reduce the frequency of bleeding episodes in the indication by offering prophylactic infusions every three to five days.
In 2016, Bioverativ generated $847m in sales and $41m in royalties off of its two products which it markets in the US, Japan, Canada and Australia.
Sanofi said the addition of Bioverativ is expected to be immediately accretive to the company's earnings in 2018 and up to five per cent accretive for the following year.
Bioverativ (NASDAQ:BIVV)'s stock had its "neutral" rating reissued by investment analysts at Credit Suisse Group in a report issued on Thursday.
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Sanofi expects to be able to leverage Bioverativ's clinical expertise and existing commercial platform to advance fitusiran, an investigational RNA interference (RNAi) therapeutic for hemophilia A and B, with or without inhibitors.
Sanofi has seen rare diseases as an alternative to its diabetes business, where it faces growing price competition as well as the loss of market share to generic competition.
Sanofi plans to finance the transaction with a combination of cash on hand and through new debt to be raised.
Lazard is acting as exclusive financial advisor to Sanofi. "T$3 he idea of setting up a company to be sold is not a strategy, and that certainly is not our strategy", CEO John Cox told FiercePharma at the 2017 J.P. Morgan Healthcare Conference.
By around 0945 BST, Sanofi shares were down 2.80% at €70.91.