Bioverativ’s business profile
Sanofi (SNY) announced its acquisition of Bioverativ (BIVV) on January 22, 2018. Bioverativ is a biopharmaceutical company that’s focused on providing therapies for hemophilia and other rare blood disorders. Celgene (CELG) is another big player in the hemophilia market.
Bioverativ completed its spin-off from Biogen (BIIB) in February 2017. Bioverativ is expected to register 30% growth in 2017, and it reported sales of ~$850 million in 2016. It generated royalties of ~$40 million in 2016.
Bioverativ’s asset portfolio consists of Eloctate for hemophilia A and Alprolix for hemophilia B treatments. It markets the products in partnership with Sobi. These differentiated products utilize Fc-fusion technology, produce an extended half-life, and require less frequent doses, resulting in improved outcomes on a long-term basis.
Currently, Eloctate and Alprolix are marketed in the United States, Japan, Australia, and Canada, though the products are approved in a number of other countries as well. The products have achieved strong penetration in these markets. Eloctate has a market share of ~16%–21%, while Alprolix has a market share of ~23%–34%.
Bioverativ’s product pipeline
Bioverativ also has an attractive product pipeline, which includes products in the hemophilia and other rare blood disorders space. It also possesses gene-editing technologies for the treatment of beta thalassemia and sickle cell disease.
Bioverativ’s rare blood disorder pipeline includes the following:
- a once-weekly Factor VIII
- an antibody for cold agglutinin disease
- early projects on gene-editing technologies for the treatment of sickle cell disease and beta thalassemia in collaboration with Sangamo Therapeutics
- fitusiran, an investigational novel RNA (ribonucleic acid) therapeutic, in agreement with Alnylam Pharmaceuticals (ALNY)
For diversified exposure to Sanofi, investors can consider investing in the PowerShares International Dividend Achievers Portfolio (PID), which holds ~1.4% of its total portfolio in SNY.
In the next article, we’ll take a look at how the acquisition of Bioverativ is expected to strengthen Sanofi’s hemophilia market position.