The Federal Trade Commission (FTC) is taking its time reviewing the proposed $2.9 billion acquisition of Provention Bio by Sanofi.
Sanofi is a French healthcare and pharmaceutical company, while Provention Bio is an American biopharma company focused on diabetes drug development. Sanofi also focuses on diabetes and cardiovascular diseases. The company proposed acquiring Provention Bio in March 2023.
According to Sanofi, it has withdrawn and refiled its premerger notification and report form with the FTC to give the agency more time to review the deal. By refiling, the 15-day review period resets, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) ends on April 25. Sanofi expects the deal to close in the second quarter of 2023, the company said in a press release.
The notification comes as the FTC is under more pressure to scrutinize major healthcare deals as the industry continues to consolidate.Some studies have shown that mergers across health systems and hospitals lead to higher prices for patients and less competition.
Sen. Elizabeth Warren (D-MA) recently asked the FTC to review CVS Health’s $10.6 billion takeover of Oak Street Health, an all-cash transaction that was announced in February this year. CVS Health is the nation’s largest pharmacy chain with more than 10,000 locations. The FTC is also reviewing a $43 billion megadeal, as Pfizer attempts to acquire cancer drug development company Seagen.
Sanofi’s multibillion-dollar acquisition of Provention Bio would give the company a significant new business for diabetes drug development. Provention Bio’s TZIELD (teplizumab-mzwv) therapy, which was approved in the United States last year, is the first and only therapy to delay the onset of Stage 3 Type 1 Diabetes (T1D) in adults and pediatric patients aged 8 years and older with Stage 2 T1D.
Under terms of the proposed acquisition, Sanofi would acquire Provention Bio for $25 per share.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."