Sanofi makes unsolicited $9.8 billion bid for Medivation
French drugmaker Sanofi (Euronext: SAN) on Thursday said it has made an offer to buy Medivation (Nasdaq: MDVN) for about $9.8 billion in an all cash deal after the US drugmaker turned down the proposal.
The company, looking to strengthen its prostate cancer portfolio, has offered Medivation $52.50 per share after the latter turned down deal talks early April. Sanofi followed up with a formal proposal on April 15.
The proposed purchase price represents a premium of over 50% to Medivation’s two-month volume weighted average price, Sanofi said in a statement.
US-based Medivation has one marketed prostate cancer therapy, Xtandi, and two additional oncology products in clinical development. Sanofi has a significant presence in prostate cancer and a strong portfolio in oncology.
Sanofi’s chief executive Olivier Brandicourt, said: “Last November, Sanofi outlined our mid-term strategy which includes rebuilding our position in oncology, one of the largest and fastest growing therapeutic areas in the biopharmaceutical sector. With Medivation’s best-in-class offerings in prostate cancer, we believe a combination would benefit patients and, at the same time, generate value for shareholders of both companies.”
In a letter to Medivation, Sanofi said: “We do not understand the delay in responding to our letter. The price we put forth represents a very substantial premium, and it would be all cash without any financing condition. In these circumstances we believe it is appropriate to make this letter public, which we are doing today.”
The deal will immediately add to the company’s earnings, the company said.
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