Shares of Provention Bio (NASDAQ: PRVB) skyrocketed 256% this week as of the market close on Thursday, according to data provided by S&P Global Market Intelligence. The massive gain came after the announcement on March 13, 2023, that French drugmaker Sanofi (NASDAQ: SNY) plans to acquire Provention Bio for around $2.9 billion.

Sanofi understandably likes the idea of adding Provention's Tzield product to its lineup. The drug won U.S. regulatory approval in 2022 to delay the onset of stage 3 type 1 diabetes (T1D) in adults, as well as in children ages 8 and older with stage 2 T1D.

This transaction appears to make sense for Sanofi. The big drugmaker had previously teamed up with Provention Bio to co-promote Tzield. Sanofi's current lineup features several diabetes products, including Lantus and Toujeo.

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Source Fool.com