PRVB - Provention stock soars 17% on pact with Sanofi for potential diabetes drug teplizumab

Provention Bio ( NASDAQ: PRVB ) said it will get $20M upfront from Sanofi ( NASDAQ: SNY ) in exchange for granting the French pharma giant an exclusive right of first negotiation to license teplizumab globally for type 1 diabetes.

In addition, Provention entered a co-promotion agreement with Sanofi U.S. for the launch of teplizumab, if approved by the U.S. Food and Drug Administration (FDA).

The drug is currently under review in the U.S. for the delay of clinical type 1 diabetes in at-risk individuals. The FDA had extended to review period of the company's biologics license application to Nov. 17.

Provention retains all rights to teplizumab and maintains responsibility for the commercialization strategy, Sanofi and Provention said in a separate Oct. 6 press release.

Pending FDA approval, Sanofi U.S. will co-promote teplizumab and commit commercial resources in the U.S., including diabetes field specialists, account directors, field-based reimbursement and medical science liaisons to accelerating uptake of teplizumab in the country. Provention will reimburse field force-related expenses that Sanofi will incur.

In addition, Sanofi US also agreed to buy $35M worth of Provention's common stock, if the drug is approved, no later than Feb. 16, 2023.

PRVB +17.17% to $5.80 premarket Oct. 6

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