Big loan tickets up for grabs as Sanofi announces M&A

Gladys Abbott
January 23, 2018

"While the Bioverativ deal specifics clearly aren't yet set in stone, we expect that macro tailwinds such as tax reform will continue to drive more M&A activity this year, but more importantly would point out that just getting back to the sector's natural stasis in terms of deal flow is likely to produce an uptick from last year's relative drought". Bioverativ Inc. (BIVV) has 0.00% since January 20, 2017 and is.

Sanofi SA said Monday that it plans to buy the hemophilia drugmaker Bioverativ of Waltham for $11.6 billion, the giant French drugmaker's biggest deal in seven years and a move that expands its footprint in MA.

Sanofi shares were 4.2 percent lower at 69.89 euros in late afternoon trading Monday, vastly underperforming the benchmark CAC 40 index in Paris which was up 0.2 percent.

French pharmaceutical company Sanofi and biotech drugmaker Celgene both announced large acquisitions.

(BIVV) for $105 per share in cash, representing an equity value of approximately $11.6 billion on a fully diluted basis.

Sanofi SNY, in a bid to strengthen its blood disorder portfolio, is acquiring Bioverativ Inc.

The agreed transaction marks Sanofi's successful return to deal-making after its failure to land major takeovers in recent years. It is the company's first major takeover since 2011 when it bought U.S. biotech Genzyme for about $20bn.

Sanofi was beaten out by Pfizer during 2016 in acquiring Medivation a cancer specialist based in California and missed out as well in acquiring Actelion the biotech company based in Switzerland.

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In a statement the French pharma group's chief executive - Olivier Brandicourt - said the deal "enhances its presence in specialty care and leadership in rare diseases" and will make the company "a leader in the growing haemophilia market".

The market that deals with treating hemophilia is one that has become very important and evolved rapidly thanks to new drugs changing the landscape. It said that hemophilia is the largest market for all rare diseases and was going to increase by over 7% per annual through the end of 2022.

On the financial and business side, the company is looking to have a sustainable revenue and earnings growth for the next years; and the acquisition has also provided an immediate business EPS accretion for Sanofi.

However, some analysts questioned the cost.

The acquisition should be beneficial for Sanofi as it can leverage the expertise of Bioverativ in rare blood disorder therapies, especially haemophilia.

Since splitting off from Biogen, Bioverativ has added to its pipeline by buying True North Therapeutics for $825m last May, a deal which brought in lead pipeline candidate BIVV009 for cold agglutinin disease (CAD), rare and chronic haemolytic condition that can lead to severe anaemia.

Sanofi plans to finance the transaction with a combination of cash on hand and through new debt to be raised. Sanofi expects to preserve its strong credit rating.

This month Celgene agreed to pay up to $7 billion to take over Impact Biomedicines and the USA company also acquired Juno Therapeutics for $9 billion.

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