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Provention Bio Stock Soared 259% on Sanofi’s $2.9Bn Acquisition

Simon Mugo trader
Updated 13 Mar 2023

The Provention Bio Inc (NASDAQ: PRVB) stock price soared 259% after news emerged that leading pharma company Sanofi had agreed to acquire the company for $2.9 billion in cash, which means that each outstanding PRVB share will be acquired for $25.00.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sanofi’s decision to buy Provention Bio at such a high premium was driven by its desire to acquire the rights to TZIELD, which was approved in the U.S. last year as the first and only therapy to delay the onset of Stage 3 type 1 diabetes (T1D) in adults and pediatric patients aged eight years and older with Stage 2 T1D.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

Investors cheered today’s announcement, which has reignited their optimism about the biotech industry as well-capitalised pharma companies continue acquiring biotech companies with promising drugs and treatments. 

Sanofi characterised the acquisition as a crucial strategic move that will help it grow its immune-mediated diseases and disease-modifying therapies in areas with high unmet needs while expanding its diabetes expertise.

The global pharma company plans to utilise its diabetes capabilities to maximise TZIELD’s potential as a transformative therapy in the U.S. and globally. Over 65,000 people are diagnosed with Stage 3 type 1 diabetes annually.  

Ashleigh Palmer, Provention Bio’s CEO and Co-Founder, said: “Sanofi and Provention Bio share a common vision of bringing new therapies to patients with autoimmune diseases. 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.”

Olivier Charmeil, Sanofi’s Executive Vice President, General Medicines, said: “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. 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.”

*This is not investment advice. 

Provention Bio (PRVB) stock price. 

The Provention bio (PRVB) stock price soared 258.96% to trade at $24.05, from Friday’s closing price of $6.70.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading