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.
Sanofi (NASDAQ:SNY)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Sanofi Charts.
Sanofi (NASDAQ:SNY)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Sanofi Charts.