France-based Sanofi has agreed to acquire US-based biopharmaceutical company Provention Bio for an equity value of approximately $2.9bn.

Under the terms of the agreement, Sanofi will buy Provention Bio’s all outstanding shares for $25.00 per share in cash.

The deal adds a fully-owned, first-in-class, disease-modifying treatment for the delay of Stage 3 type 1 diabetes (T1D), Tzield, to Sanofi’s core asset portfolio in General Medicines.

The addition also advances its strategic shift toward products with a differentiated profile.

TZIELD (teplizumab-mzwv) is said to be a CD3-directed antibody designed to delay the onset of Stage 3 T1D in adults and paediatric patients aged eight years and above with Stage 2 T1D.

It was cleared in the US in 2022 as the first and only such disease-modifying treatment.

Currently, the drug is in late-stage clinical development to treat newly diagnosed clinical T1D (Stage 3) in paediatric and adolescent patients.

Sanofi General Medicines EVP Olivier Charmeil 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.

“Given our existing partnership and complementary work in diabetes and immunology spaces, we foresee a seamless integration and execution.”

The acquisition is said to be a strategic fit for Sanofi given its experience in diabetes, growth in immune-mediated disorders, and development of disease-modifying treatments in areas with unmet medical needs.

The French pharmaceutical company will use its capabilities in diabetes to maximise TZIELD’s potential as a transformative therapy internationally and in the US.

Sanofi said that the acquisition builds on an existing co-promotion deal signed with Provention Bio to provide Tzield to patients who require this immune-mediated medication.

The acquisition is expected to close in the second quarter of 2023, subject to the satisfaction or waiver of customary closing conditions.