
Genzyme ponders Sanofi offer
pharmafile | July 27, 2010 | News story | Research and Development, Sales and Marketing |Â Â Genzyme, Sanofi-AventisÂ
Sanofi-Aventis is understood to have approached the board of Genzyme with a takeover bid for the company.
News agency Reuters says Genzyme is weighing up an informal approach from the French pharma company.
Genzyme has endured a torrid 12 months, sparked by manufacturing problems with its two key products Cerezyme and Fabrazyme, but the long-term potential of the specialist company is clear to big pharma companies.
Cerezyme and Fabrazyme are both high cost treatments for rare genetic disorders, and Genzyme had established dominance in these lucrative therapy areas before the production problems.
Recent Q2 sales figures show revenues decimated by an FDA-enforced shut down in production of the drugs, though the end may now be in sight for the manufacturing issues.
Genzyme shares have risen strongly in response to the rumours, reaching levels not seen since February 2009 – when its manufacturing problems began.
Some analysts predict Genzyme shareholders could accept a price of $70 to $80 per share, particularly those new investors who were attracted to the company when activist investor Carl Icahn gained influence on the company’s board in June.
The company’s founder and current chief executive and president Henri Termeer is likely to resist any takeover of the company, but may well be outmanoeuvred by the new board members loyal to Carl Icahn.
Andrew McConaghie
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