Sanofi ‘considering’ raising Genzyme offer
pharmafile | January 19, 2011 | News story | Manufacturing and Production, Research and Development, Sales and Marketing |Â Â Genzyme, Sanofi, Sanofi-Aventis, pharma mergers and acquisitionsÂ
Sanofi-Aventis could be willing to raise its offer to $76 a share to buy the US biotech firm Genzyme, according to French newspaper Le Figaro.
Sanofi originally offered $69 a share in July and has refused to go higher despite being criticised by Genzyme chief executive Henri Termeer for undervaluing his company.
Sanofi subsequently mounted an unsuccessful hostile bid for the biotech in October, but Genzyme’s board – and shareholders – continued to hold out against its advances.
Now Sanofi may be willing to increase its bid to $70 to $71 a share in cash, according to Le Figaro, with a contingent value right (CVR) added to it to reach $76 a share. The CVR would be pegged to the future performance of its MS candidate Lemtrada.
Genzyme says Lemtrada, currently indicated for leukaemia under the brand name Campath, could generate sales of $3.5 billion a year, a figure Sanofi disputes.
The pharma company says that because of the evolving MS market Lemtrada could only hope to make a more modest $700 million a year.
Sanofi has distanced itself from the Le Figaro report, saying that its position regarding talks with Genzyme remains unchanged.
In a separate development, Sanofi has welcomed the European Commission’s decision to clear its proposed acquisition of Genzyme unconditionally under EU merger control rules, removing one barrier to its success should the companies strike a deal.
Sanofi and Genzyme have only three more days to negotiate before Sanofi’s current offer expires on 21 January, unless Sanofi decides to once again extend its deadline.
Ben Adams
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