Sanofi Moves to Acquire Bioverativ

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Bioverativ Inc. (NASDAQ: BIVV) is adding to Monday’s M&A news after it was announced that Sanofi (NYSE: SNY) would be acquiring the firm. This announcement easily puts Bioverativ as one of the biggest winners on the day.

Early today, it was announced that Celgene was acquiring Juno Therapeutics.

In terms of this deal, Sanofi will be paying $105 per share for Bioverativ, valuing the transaction at roughly $11.6 billion. Shares will be purchased through a tender offer, which will commence in February. The entire transaction is expected to close within three months.

The price represents premiums of 89% and 83.5% from 50-day and 200-day moving averages of $55.41 and $57.21, respectively.

The addition of Bioverativ is anticipated to drive meaningful value for Sanofi shareholders, with strong cash flows from Bioverativ’s growing products expected to increase Sanofi’s financial and operational scale. The acquisition is expected to be immediately accretive to Sanofi’s Business earnings in 2018 and up to 5% accretive in 2019.

This also supports Sanofi’s priority of reshaping its portfolio by adding a differentiated offering of innovative therapies and providing a platform for growth in rare blood disorders, which will expand the firm’s presence in specialty care, further strengthen its leadership position in rare diseases and meet the needs of the patient community.

Olivier Brandicourt, Sanofi’s CEO, commented:

With Bioverativ, a leader in the growing hemophilia 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. 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.

Shares of Bioverativ were last seen up about 63% at $104.22, with a consensus analyst price target of $69.60 and a new 52-week trading range of $41.88 to $104.30.

Sanofi traded about 4% lower to $42.72 a share. The stock has a 52-week range of $39.42 to $50.65 and a consensus price target of $49.50.