Novo Nordisk Is Negotiating to Buy French Device-Maker Biocorp for $165M

Novo Nordisk A/S and BIOCORP Production SA announced June 5th that Novo Nordisk has entered into exclusive negotiations for a controlling stake in BIOCORP, which would be followed by a mandatory simplified tender offer on all remaining outstanding shares in BIOCORP1 at a price of 35.00 Euros per share in cash, representing a total equity value of approximately 154 million Euros.

BIOCORP is a French company specialized in the design, development and manufacturing of delivery systems and innovative medical devices, including Mallya, a Bluetooth enabled smart add-on device for pen injectors.

Since 2021 the companies have been collaborating on the development and commercialisation of a Mallya add-on device for the Novo Nordisk FlexTouch pen used by people with diabetes, and during 2022 and 2023 this engagement has been expanded to the development of versions of the Mallya device for other therapy areas. 

The company is aiming to improve diabetes treatments

Novo Nordisk is known for its efforts to find ways to improve diabetes treatments. Back in 2019, Novo Nordisk announced U.S. Food and Drug Administration (FDA) approval for Rybelsus® (semaglutide) tablets 7 mg or 14 mg for adults with type 2 diabetes. Along with diet and exercise, the drug may improve blood sugar (glucose) levels. Rybelsus® is the first and only glucagon-like peptide-1 (GLP-1) analog in a pill and a new option for adults with type 2 diabetes who are not achieving their A1C goal with current antidiabetic treatment. 

The company continued to further its efforts in the following years, this recent move helping it propel its endeavor to make life easier for diabetes patients. 

“Novo Nordisk has strong and established core capabilities within developing, scaling, and large-scale manufacturing of innovative injection devices for insulin and other medicines, and we are looking to increase agility to enable faster innovation and development of novel connected devices,” said Marianne Ølholm, senior vice president, Devices and Delivery Solutions in Novo Nordisk. “We have enjoyed a fruitful collaboration with BIOCORP over the past couple of years, and we hope to be able to welcome the company and its highly skilled workers into Novo Nordisk to complement our in-house efforts within connected delivery solutions and accelerate our ambitions within devices and delivery solutions.”

Making life easier for chronic disease patients 

Following the acquisition, Novo Nordisk would aim to preserve the agility and entrepreneurial spirit of BIOCORP, while investing further in the organization with the goal of delivering cutting edge devices and delivery solutions to improve care for people across the globe living with serious chronic diseases.

“We are delighted by the potential to join Novo Nordisk, a leading global healthcare company. This potential combination rewards our efforts, begun 5 years ago, to digitalize the treatment and monitoring of chronic patients, with the constant aim of easing their daily lives. Our teams are enthusiastic about pursuing this public health mission, which will be intensified by the strength of Novo Nordisk’s global presence,” said Eric Dessertenne, CEO (Directeur général) of BIOCORP.

Novo Nordisk is not the only company to make such a move on the healthcare market. In March, Sanofi SA, the renowned French drugmaker, has announced its plans to shell out a staggering $2.9 billion to acquire the biotech firm Provention Bio. The purchase decision comes off the back of an existing co-marketing deal between the two pharma companies.

The acquisition, expected to finalize in Q2 of 2023, would grant Sanofi full ownership of Provention Bio’s recently FDA-approved type 1 diabetes therapy, Tzield. This would help Sanofi regain its dominant position in the lucrative U.S. diabetes market and bolster its medication pipeline after a series of setbacks.

About the proposed transaction

Novo Nordisk has entered into exclusive negotiations with BIO JAG (“BIO JAG”), BIOCORP’s main shareholder, relating to the acquisition by Novo Nordisk of BIO JAG’s entire stake in BIOCORP representing 45.30% of its share capital and 62.19% of its theoretical voting rights2. Moreover, Novo Nordisk would acquire, concomitantly with, and subject to the acquisition of BIO JAG’s stake, at the same price per share, the shares held in BIOCORP by certain minority shareholders, including Nyenburgh, Greenstock and Vatel Capital, representing, in aggregate, 19.03% of the share capital and 13.07% of the theoretical voting rights of BIOCORP3 (together with the acquisition of BIO JAG stake, the “Block Purchase”). 

The signing of a definitive documentation with BIO JAG would only take place following the information and consultation of BIOCORP’S Works Council (the “Comité Social et Economique”, or “CSE”). Completion of the Block Purchase will be subject to customary regulatory approvals.

Subject to completion of the Block Purchase, Novo Nordisk would file with the French Financial Market Authority (Autorité des Marchés Financiers – the “AMF”) a mandatory simplified tender offer on all remaining outstanding BIOCORP shares on the same financial terms as the Block Purchase (EUR 35,00 per share) (the “Offer”). 

The price of the Offer values 100% of BIOCORP’s share capital and voting rights representing a total equity value of approximately EUR 154.4 million on a fully diluted basis (the “Offer”). The price of the Offer represents a premium of 19.5% over BIOCORP’s closing market price on 2 June 2023 and 45.2% compared to the volume weighted average trading prices of the last 90 trading days.

On 4 June 2023, BIOCORP’s Board of Directors favorably and unanimously welcomed the proposed transaction, without prejudice to BIOCORP’s Board of Directors’ reasoned opinion (avis motive) which should be issued following remittance of the independent expert report, subject to the completion of the Block Purchase.

The Block Purchase should take place during the third quarter of 2023. Filing of the subsequent Offer should take place in September 2023.

About BIOCORP

Recognized for its expertise in the development and manufacture of medical devices and delivery systems, BIOCORP has a leading position in the connected medical device market thanks to Mallya. This intelligent sensor for injection pens allows reliable monitoring of injected doses and is used for the treatment of patients suffering from chronic disease in various therapeutic areas. Available for sale since late 2020, Mallya spearheads BIOCORP’s product portfolio of innovative connected solutions. The company has approximately 80 employees. For more information, visit biocorpsys.com

BIOCORP has been listed on Euronext Growth since July 2015 (FR0012788065 – ALCOR).

About Novo Nordisk

Novo Nordisk is a leading global healthcare company, founded in 1923 and headquartered in Denmark. Our purpose is to drive change to defeat diabetes and other serious chronic diseases such as obesity and rare blood and endocrine disorders. We do so by pioneering scientific breakthroughs, expanding access to our medicines, and working to prevent and ultimately cure disease. Novo Nordisk employs about 57,100 people in 80 countries and markets its products in around 170 countries.