(News Bulletin 247) – Oddo maintains its ‘outperformance’ rating on Sanofi shares, with an unchanged target price of 105 euros.

The analyst firm announces that it learned this morning that Sanofi will launch a cash tender offer to acquire Provention Bio, Inc. at a price of $25.00 per share, or 273% higher than the last quoted price (close at $6.7), which equates to an acquisition price of approximately $2.9 billion.

This acquisition would see Sanofi return to the diabetes market. The acquisition was to be finalized in the second quarter of 2023, according to Sanofi.

Oddo sees this acquisition as ‘an additional portfolio for Sanofi partially derisked from diversifying its topline a little more’.

“This acquisition is therefore opportunistic and despite a mechanical dilution of EPS for this year according to consensus estimates (-1% impact), we believe that Sanofi has the capacity to absorb this impact without modifying its annual guidance”, concludes the broker.

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