Sanofi to Acquire Bioverativ for $11.6 Billion

Sanofi SA (SAN.FR) said Monday that it will acquire all outstanding shares in Bioverativ Inc. (BIVV) for $11.6 billion to expand its presence in specialty care and strengthening leadership in rare diseases.

The operation is expected to close within three months, Sanofi said.

The French company said that it will pay $105 in cash for each share. This price represents a 64% premium to Bioverativ's closing price on Jan. 19, the company said.

U.S.-based Bioverativ, which generated $847 million in sales in 2016, is a biopharmaceutical company focused on therapies for hemophilia and other rare blood disorders, Sanofi said.

"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," Chief Executive Olivier Brandicourt said.

Sanofi expects the deal to be immediately accretive to its earnings per share in 2018 and up to 5% accretive in 2019. It also forecasts it will achieve return on invested capital in excess of cost of capital within three years.

"Sanofi brings proven capabilities and a global infrastructure, which we believe will help to more rapidly expand access to our medicines globally and further our mission of transforming the lives of people with rare blood disorders," Bioverativ's Chief Executive John Cox said.

Hemophilia represents the largest market for rare diseases, Sanofi said, with close to $10 billion in annual sales and 181,000 people affected worldwide.

The market is expected to grow more than 7% per year through 2022 is expected.

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

(END) Dow Jones Newswires

January 22, 2018 01:46 ET (06:46 GMT)