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Acquisition will bolster Sanofi's work on a U.S.-approved type 1 diabetes therapy and strengthen its drug pipeline following development setbacks.
Reuters reported French pharmaceutical company Sanofi SA has agreed to acquire Provention Bio Inc for $2.9 billion in cash to strengthen its drug pipeline following development setbacks.
The acquisition would give Sanofi full ownership of Tzield, a drug that was approved in the United States last year for delaying the onset of the third and final stage of type 1 diabetes. The deal builds on an existing co-promotion agreement between the two companies, and Sanofi expects to complete the acquisition in the second quarter of 2023.
While Sanofi's asthma and eczema drug Dupixent are boosting sales, its drug development pipeline has been criticised as weak by investors. Provention Bio's shares nearly quadrupled in premarket trade from their last close at $6.70 after the announcement.