MDVN Medivation, Inc. (MM)

By Noemie Bisserbe and Liz Hoffman 

PARIS -- U.S. biotech firm Medivation Inc. said it had signed confidentiality agreements with several suitors, including Sanofi SA, opening the door to potential takeover talks after months as a reluctant target.

In addition to France-based Sanofi, which has been pursuing Medivation for more than three months, Pfizer Inc. and Celgene Corp. are among the companies that have signed confidentiality agreements, people familiar with the matter said.

Such agreements will allow them to inspect Medivation's nonpublic information and are typically the first step toward deal negotiations. Medivation has a market value of more than $10 billion.

Medivation also rejected a sweetened bid from Sanofi, which raised its offer to $58 a share from $52.50 a share. It also is offering an additional $3 per share in contingent consideration tied to future sales of one of Medivation's experimental drug -- a breast cancer treatment in late-stage clinical trials.

Shares of Medivation rose 2.7% to $61.76 at 4 p.m. ET trading in New York amid media reports of a confidentiality pact with Sanofi. In after-hours trading, Medivation shares increased 1.3% to $62.65. Sanofi's American depositary receipts declined 1% to $41.36 in New York trading.

The Paris-based drugmaker bid $9.3 billion for Medivation in April. A possible takeover of Medivation would allow Sanofi to significantly ramp up its drugs portfolio at a time when it is under pressure to launch new innovative medicines to make up for declining sales of its blockbuster Lantus insulin.

After Medivation rejected the bid, Sanofi called a shareholder vote on whether to remove the Medivation's entire board.

Sanofi said Tuesday that it had agreed to abandon that effort and not to revive it for at least six months, subject to certain conditions.

Write to Noemie Bisserbe at noemie.bisserbe@wsj.com and Liz Hoffman at liz.hoffman@wsj.com

(END) Dow Jones Newswires

July 06, 2016 02:48 ET (06:48 GMT)

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