French drugmaker Sanofi said Monday it had agreed to acquire Bioverativ, a biopharmaceutical company focused on treatments for hemophilia and other rare blood disorders, for $11.6 billion in cash.
Sanofi, the parent company of Chattem Inc., in Chattanooga, has sought to use acquisitions to bolster its portfolio of drugs, particularly because it faces declining sales for its diabetes drug, Lantus, which has lost its patent protection. According to the company, sales of Lantus declined more than 16 percent in the first nine months of last year, based on constant exchange rates, and rivals are moving to introduce generic versions of the treatment.
The Bioverativ deal would enhance Sanofi's "presence in specialty care and leadership in rare diseases" and "creates a platform for growth in other rare blood disorders," said Olivier Brandicourt, Sanofi's chief executive.
Bioverativ, based in Waltham, Mass., was spun out of Biogen last year. It markets two products to treat hemophilia in Australia, Canada, Japan and the United States. The company generated $847 million in sales in 2016.
"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," said John G. Cox, Bioverativ's chief executive.
Under the terms of the deal, Sanofi would pay $105 in cash for each share of Bioverativ. That represented a 64 percent premium to Bioverativ's closing price Friday. Sanofi plans to finance the transaction with a combination of cash and debt.
The transaction is subject to regulatory approval and to a majority of Bioverativ's shareholders agreeing to sell their shares. It is expected to close within three months.
The Bioverativ transaction marks Sanofi's largest deal since it agreed to acquire Genzyme for $20.1 billion in 2011. In the interim, the French company has made several major bids for other drugmakers, albeit unsuccessfully.
Sanofi bought Chattem in 2009 for $1.9 billion to give the company an over-the-counter presence in the United States, but only put its Sanofi name on its Chattanooga facilities last year.
Medivation, a maker of prostate cancer drug treatments, rebuffed a takeover offer from Sanofi in 2016 and was ultimately acquired by Pfizer for $14 billion. Sanofi also missed a chance to acquire Actelion Pharmaceuticals, which was bought by Johnson & Johnson for $30 billion last year.