2023-03-26 03:52:57 ET
Summary
- Sanofi proposed to acquire Provention Bio for $2.9 billion in cash at a 273% premium over the previous closing price (before the deal announcement).
- The acquisition is expected to be a net positive for Tzield's commercial launch, with Sanofi's leading diabetes franchise and sales force.
- Risks include the possibility of the acquisition falling through, the competitive landscape, regulatory risks, and intellectual property challenges.
- We believe the acquisition is likely to go through smoothly and that Provention Bio is a buy with a target price of $25 (Sanofi's acquisition price).
For further details see:
Provention Bio: Sanofi Acquires Provention Bio With A 273% Premium