Published on 14 Mar 2023 on Zacks via Yahoo Finance

Provention (PRVB) Skyrockets 260% on Buyout Offer From Sanofi

Shares of Provention Bio PRVB were up 260% on Mar 13 after the company announced that it has signed a definitive agreement with Sanofi SNY. Provention would be acquired by Sanofi for $25 per share in cash, amounting to $2.90 billion.

A commercial-stage pharmaceutical company, PRVB is engaged in developing new therapies targeting life-threatening immune-meditated diseases. Provention has only marketed drug in its portfolio Tzield (teplizumab), which the FDA approved last November as the first and only treatment that can delay the onset of stage 3 type 1 diabetes (T1D) in adults and pediatric patients aged eight years and older having stage 2 T1D.

The acquisition deal made by Sanofi stems from a previously signed co-promotion deal for Tzield signed between Provention Bio and Sanofi in October 2022.Per the terms of the agreement, Sanofi will commit commercial resources for Tzield in the United States. Provention will reimburse field force-related expenses that Sanofi will incur in connection with commercializing Tzield under the agreement. Sanofi also holds the exclusive right of the first negotiation to in-license Tzield globally for T1D.