Sanofi’s Genzyme takeover bid focuses on Campath
pharmafile | January 10, 2011 | News story | Research and Development, Sales and Marketing | Genzyme, Sanofi, Sanofi-Aventis, biotech acquisition
Sanofi-Aventis and Genzyme have come back to the negotiation table to discuss the potential of Genzyme’s multiple sclerosis drug Campath.
In October, in an effort to bolster the company’s position in the eyes of its suitor Sanofi, Genzyme released data from a five-year phase II study of its MS candidate Campath, currently indicated to treat blood cancers, and forecast annual sales of around $3.5 billion.
Sanofi, and several other big pharma firms including Novartis, have questioned Genzyme’s optimism for Campath, which has been renamed Lemtrada for its MS candidacy.
Sanofi said in statement that “there remain significant differences” on the terms and conditions of the ‘potential contingent value right’, a type of right given to shareholders of an acquired company for extra payments from the drug, in an effort to sweeten the current deal.
The French firm added that there was “no guarantee” that the parties will come to an agreement, but this latest development represents a thaw in the relationship between the two.
Sanofi launched its takeover bid for the beleaguered US biotech in July, but Genzyme’s chief executive Henri Termeer has been reluctant to engage with the company.
Genzyme has held firm that Sanofi’s offer of $69 a share – which amounts to an $18.5 billion cash offer – undervalues the US biotech’s long-term prospects and says an offer of $80 a share would be fairer.
Sanofi then mounted a hostile bid for the biotech, approaching its shareholders directly, but Genzyme’s board held out, forcing Sanofi to extending its offer deadline to 21 January.
The French drugmaker is now considering increasing its offer, two people with knowledge of the situation have told Bloomberg.
They added that Sanofi might raise its offer by about $2 to get access to Genzyme’s books, if both sides can agree on the extra payments.
Ben Adams
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