Medivation Rejects Sanofi's $9.3 Billion Takeover Bid--Update
April 29 2016 - 10:43AM
Dow Jones News
By Joshua Jamerson and Noemie Bisserbe
Medivation Inc. on Friday said it rejected Sanofi SA's $9.3
billion takeover offer, claiming that the French drugmaker's
proposal "undervalues" the cancer-treatment company.
The move by Medivation comes one day after Sanofi said it made
an unsolicited offer, which was its latest effort to expand its
cancer-treatment business.
Medivation said its board had unanimously rejected the Sanofi's
offer and that the proposal would deny its shareholders of the
value in its late-stage pipeline, as well as its flagship oncology
drug, Xtandi.
Sanofi responded Friday by saying it remained "committed" to the
transaction and looked forward to "engaging directly with
Medivation shareholders."
Sanofi's offer of $52.50 a share was a 50% premium on
Medivation's average share price for the two months before takeover
speculation emerged, though lower than Medivation's current share
price, which was buoyed by takeover speculation.
Medivation's shares rose 0.1% to $56.20 in morning trading in
New York, while Sanofi shares fell 5% in Paris trading.
Separately on Friday, Sanofi reported better-than-expected
business income, or adjusted profit excluding the impact of
acquisitions and divestments -- at EUR1.72 billion. Analysts
expected EUR1.69 billion. The company said the results were boosted
by Genzyme, its biotech division, as its insulin product, Lantus,
continued to post declining sales.
Sanofi's public approach to the Medivation bid has echoes of
Sanofi's deal to purchase U.S. biotech firm Genzyme for some $20
billion in 2011. Sanofi took an offer directly to Genzyme
shareholders after months of fruitless efforts to bring the U.S.
firm's management to the negotiating table. It later increased its
offer to get the deal done.
For Sanofi, which is under pressure to launch new innovative
medicines to make up for declining revenue in its diabetes market,
a takeover of Medivation could help it build a competitive position
in a hotly tipped market where it is still a small player.
Write to Joshua Jamerson at joshua.jamerson@wsj.com and Noemie
Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
April 29, 2016 10:28 ET (14:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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