Sanofi to add future payments onto Medivation offer, according to reports
pharmafile | June 23, 2016 | News story | Research and Development, Sales and Marketing | Medivation, Sanofi
Sanofi (NYSE: SNY) is considering adding future payments, tied to certain targets, to its proposed $9.3 billion takeover of US oncology firm Medivation (NASDAQ: MDVN), according to reports.
The French company has been engaged in an escalating campaign to seize control of Medivation, with its latest move seeing it directly engage with shareholders in an attempt to convince them to replace a board of directors which, up to now, has refused to engage on a potential sale.
In its most recent discussions with shareholders, Sanofi has proposed the inclusion of these add-ons to sweeten the deal. Such a move would echo Sanofi’s approach to the $20 billion acquisition of Genzyme in 2011, which saw the inclusion of additional milestone payments for Lemtrada (alemtuzumab), which went on to receive FDA approval in 2014.
The board at Medivation, however, have been adamant in their rejection of Sanofi’s overtures so far, claiming that Sanofi’s offer “substantially undervalues” the company and the new board members proposed by the French company would not act in the best interests of shareholders.
In a letter delivered to shareholders last week, chairman Kim Blickenstaff and CEO David Hung wrote: “In an attempt to force its grossly inadequate proposal on Medivation stockholders, Sanofi has engaged in a series of coercive actions… Your board urges you to reject Sanofi’s solicitation efforts.”
A decision is expected from shareholders on whether or not to replace the Medivation board later this summer.
Sean Murray
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