Board at Medivation unanimously reject Sanofi bid
The board at Medivation has unanimously rejected the $9.8 billion takeover bid from Sanofi.
They declare that Sanofi’s bid of $52.50 per share “substantially undervalues” the company and is “not in the best interests of the company and its stockholders”.
The board based their decision on several factors including: Sanofi undervaluing their potentially lucrative oncology franchise; the takeover would see Medivation stockholders denied the value of their wholly-owned late stage pipeline; their current business plan will deliver far more value for stockholders; and Sanofi’s timing is entirely designed to suit themselves, not Medivation.
Founder and CEO at Medivation, David Hung, says: “Sanofi’s opportunistically-timed proposal, which comes during a period of significant market dislocation, and prior to several important near-term events for the company, is designed to seize for Sanofi value that rightly belongs to our stockholders. We believe the continued successful execution of our well-defined strategic plan will deliver greater value to Medivation’s stockholders than Sanofi’s substantially inadequate proposal.”
In response to the rejection, a Sanofi statement reads: “Combining Sanofi and Medivation represents a compelling strategic and financial opportunity to drive immediate and certain value for Medivation’s shareholders while benefiting patients and both companies’ respective stakeholders… While to date Medivation has chosen not to enter into discussions regarding this value-creating transaction, Sanofi remains committed to the combination and looks forward to engaging directly with Medivation shareholders with regard to our proposal.”
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