Provention Bio Inc PRVB shares are rocketing higher Monday after Sanofi SNY announced plans to acquire the biopharmaceutical company.
What Happened: Sanofi and Provention Bio entered into an agreement in which Sanofi will acquire Provention Bio for $25 per share in cash, representing an equity value of approximately $2.9 billion.
Sanofi has its eyes set on TZIELD, Provention Bio's diabetes therapy, which was approved in the U.S. last year. The acquisition builds on an existing agreement with Provention Bio that allowed the companies to co-promote TZIELD to patients in need.
"By coupling Provention Bio’s transformative innovation with Sanofi’s expertise, we aim to bring life-changing benefits to people at risk of developing Stage 3 type 1 diabetes. Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution," said Olivier Charmeil, executive vice president of general medicines at Sanofi.
TZIELD is the first and only treatment to delay the onset of Stage 3 type 1 diabetes. Provention Bio also brings a pipeline of assets in early development in immune-mediated diseases.
"Sanofi’s global expertise and commitment to immunology makes them an ideal acquiror and positions our innovative therapy to reach more patients as quickly as possible," said Ashleigh Palmer, co-founder and CEO of Provention Bio.
See Also: Pfizer Is Sending Seagen Stock Soaring Monday: What's Going On?
PRVB Price Action: Provention Bio is trading well above its 52-week high of $10.88 following the takeover announcement.
The stock was up 261.9% at $24.25 at time of publication, according to Benzinga Pro.
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