Sanofi buys US company in $11.6 bln agreement

Sanofi buys US company in $11.6 bln agreement

Paris-Agence France-Presse
Sanofi buys US company in $11.6 bln agreement

French pharmaceutical firm Sanofi said yesterday it had reached an agreement to purchase U.S. biotech company Bioverativ, which specializes in treatments for hemophilia and rare blood disorders, for $11.6 billion (9.5 billion euros).

Sanofi’s chief executive Olivier Brandicourt said the acquisition “enhances its presence in specialty care and leadership in rare diseases ... and creates a platform for growth in other rare blood disorders.”       

The purchase should also translate into a boost in profits per share beginning this year, rising to a gain of up to 5 percent in 2019, Sanofi said in a statement.     

Bioverativ has latest-generation treatments for hemophilia, a disorder where blood does not clot properly to stop bleeding.Sanofi said it would be able to help Bioverativ with the research it has under way on the development of other hemophilia treatments as well as for other rare diseases.

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 Jan. 19, Sanofi said.

The French firm said it would use funds on hand and borrow to finance the acquisition of Bioverativ. The purchase is the largest Sanofi has made since it acquired U.S. biotech firm Genzyme for $20 billion in April 2011.