Sanofi buys hep B vaccine maker for $2.2bn

Core Viewpoint - Sanofi is set to acquire Dynavax for approximately $2.2 billion, enhancing its vaccine portfolio amid changing vaccine policies in the US [1][4] Group 1: Acquisition Details - The acquisition price is $15.50 per share in cash, with the deal expected to close in the first quarter of 2026 [1] - Sanofi will gain Dynavax's hepatitis B vaccine HEPLISAV-B, which was approved in the US in 2017 and in Europe in 2021 [2] - Sanofi currently lacks a hepatitis B vaccine in its portfolio, having previously partnered with MSD for a vaccine that is now solely commercialized by MSD [2] Group 2: Product and Market Insights - HEPLISAV-B is administered in a two-dose regimen within one month, contrasting with competitors GSK's Engerix-B and MSD's Recombivax HB, which require three doses over six months [3] - HEPLISAV-B generated sales of $268.4 million in 2024, with Dynavax projecting net product revenue of $305 million to $325 million for 2025 [3] - GlobalData forecasts that HEPLISAV-B will achieve annual sales of $677 million by 2031 [3] Group 3: Industry Context and Regulatory Changes - The acquisition comes amid significant regulatory changes, as the CDC has altered its guidance, no longer recommending hepatitis B vaccination for all US newborns, leading to volatility in the vaccine sector [4] - Analyst Matt Phipps noted that the deal value is slightly below the net present value for HEPLISAV-B, but the acquisition aligns with addressing regulatory concerns and investor expectations for value creation [4] Group 4: Future Prospects - Dynavax's pipeline includes a shingles vaccine candidate, Z-1018, currently in Phase I/II trials, which has shown comparable efficacy to GSK's Shingrix while having fewer adverse reactions [5] - The shingles market is significant, with Shingrix generating £3.4 billion globally for GSK in 2024, indicating the potential market size for Z-1018 [6]