The French multinational pharmaceutical company has recently closed the deal on one of the biggest deals in the pharmaceutical market with Bioverativ acquisition.  According to reports, the previous Friday closing price of Bioverativ was at 64%; this deal is looking to bridge two humongous companies in order to fend off diabetes headwinds.

The agreement was cemented today with a massive $11.6 billion offer; the French pharmaceutical company is looking to diversify their portfolio with their recent acquisition adding a treatment for rare blood disorders.


Deal Details

According to Sanofi’s statement, the deal value was at $105 a share; the deal value is accepted at 64% premium over last week’s closing price. The deal has been a long haul for both of companies as acquisition deals flood Bioverativ. The French company is also looking to reinforce their lackluster diabetes medicine sales with Bioverativ acquisition.

Sanofi has also effectively expanded their specialty care and have put enormous headwind for their leadership race in terms of rare diseases. Furthermore, Bioverativ has been the long crowned king for the hemophilia market and also sporting a massive portfolio in other rare blood disorders and other rare blood diseases.

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. Furthermore, the acquisition deal for Sanofi is the biggest one they have since 2011 for Medivation, the other one would be the lost Actelion bid against Johnson & Johnson.


CEO’s Note

According to Sanofi’s CEO Oliver Brandicourt, “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,”

Brandicourt also mentions that “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.”

Analysts on Deals and Acquisition

The pharmaceutical deals and acquisition have been going on as a trend this year, this is the first of this year on the massive market consolidation that they are experiencing. According to some analysts, the trend is looking to continue this year due to the massive U.S. tax renovation.

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