Sanofi announced that it agreed to acquire Provention Bio, which develops therapeutics for immune-mediated diseases, for approximately $2.9 billion.

Paris, France-based Sanofi agreed to acquire Provention Bio for $25 per share in cash. If the companies complete the acquisition, Sanofi expects a wholly-owned subsidiary to merge with and into Provention Bio. It intends to fund the deal with available cash resources and expects it to close in the second quarter of 2023.

Provention Bio develops therapies focused on intercepting and preventing immune-mediated diseases, including type 1 diabetes. Sanofi said the acquisition adds Provention Bio’s fully owned, first-in-class type 1 diabetes therapy to its core asset portfolio in general medicines. It also drives Sanofi’s strategic shift toward products with a differentiated profile, according to a news release.

The FDA approved Tzield (teplizumab-mzwv) last year for delaying the onset of stage 3 type 1 diabetes in adults and pediatric patients aged eight years and older with stage 2 type 1 diabetes.

“The acquisition of Provention Bio builds on Sanofi’s mission to deliver best- and first-in-class medicines and resonates with our purpose of chasing the miracles of science for the benefit of people,” said Olivier Charmeil, Sanofi EVP, general medicines. “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. Any additional indications, approvals and pipeline assets only serve to further our excitement. Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution.”

More about how Provention Bio fits at Sanofi

Sanofi called the acquisition a “strategic fit.” It falls at the intersection of its growth in immune-mediated diseases and disease-modifying therapies and its expertise in diabetes.

The company said it plans to utilize its diabetes capabilities to maximise Tzield’s potential as a “transformative therapy,” both globally and in the U.S. Sanofi’s acquisition builds on an existing co-promotion agreement with Provention Bio. This agreement already delivers Tzield to patients in need of the therapy.

A CD3-directed antibody, Tzield delays the onset of stage 3 type 1 diabetes. It’s also in late-stage clinical development to treat pediatric and adolescent patients that are newly diagnosed with clinical type 1 diabetes (stage 3). Provention Bio expects top-line Phase 3 clinical trial results in the second half of this year.

The company also intends to pursue additional opportunities for Tzield. That includes re-dosing and formulations, as well as new therapeutic indications. Sanofi said Provention Bio also brings certain pipeline assets in early development for immune-mediated diseases.

“Sanofi and Provention Bio share a common vision of bringing new therapies to patients with autoimmune diseases,” said Ashleigh Palmer, Provention Bio CEO and co-founder. “Under our co-promotion agreement, our companies have made significant progress educating healthcare providers and increasing patient access during the initial U.S. commercial launch of Tzield. 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.”