Sanofi to buy US haemophilia group Bioverativ for $11.6 billion

PARIS: French healthcare group Sanofi has agreed to buy US haemophilia specialist Bioverativ for $11.6 billion, in a deal which it said would boost earnings and strengthen its presence in treatments for rare diseases.
The move comes at a time of renewed interest by large drugmakers in smaller biotech firms and predictions by some experts that 2018 will see a substantial pick-up in mergers and acquisitions.
Sanofi has agreed to buy all of the outstanding shares of Bioverativ for $105 per share in cash, marking a premium of 64 per cent to Bioverativ’s closing price on January 19.
Bioverativ, a maker of haemophilia drugs, was separated from Biogen Inc early last year.
The agreed transaction marks Sanofi’s successful return to deal-making after its failure to land major takeovers in recent years.
It is its biggest acquisition since the 2011 takeover of US biotech company Genzyme for around $20 billion.
Sanofi lost out on buying California-based cancer specialist Medivation to Pfizer in 2016, and also missed acquiring Swiss biotech company Actelion, which was bought by Johnson & Johnson last year.
“With Bioverativ, we welcome a leader in the growing haemophilia market,” Sanofi Chief Executive Olivier Brandicourt said.
The market dealing with treatments for haemophilia is an important one that is evolving rapidly as new drugs change the landscape.
Further ahead, gene therapy promises to disrupt traditional approaches to tackling the inherited condition.
Sanofi said the sector had around $10 billion in annual sales, dealing with 181,000 people affected worldwide.
It added that haemophilia represented the largest market for rare diseases and was set to grow by more than 7 per cent per year through to 2022.
Sanofi expects the acquisition to be immediately accretive to its business earnings per share in the full 2018 financial year and up to 5 per cent accretive for the following year.
It added it would fund the takeover with a mixture of existing cash resources and a debt issue. — AFP