Sanofi undeterred after Medivation spurns $9.3 bn bid
Sanofi has said it will continue pursuing cancer drug firm Medivation after the US company rejected a $9.3 billion unsolicited takeover offer.
Medivation said its board had unanimously rejected the offer in a lengthy statement, which said the offer is too low, and takes advantage of a period in which pharma stocks are at a low price.
Sanofi went public with its bid for Medivation yesterday, after several weeks of speculation. AstraZeneca and Johnson & Johnson are among companies rumoured to be interested.
Medivation said the offer, at $52.50 per share, is 21% below its 52-week high of $66.40 and only 9% above the volume weighted average price last month.
Medivation noted it is already profitable thanks to blockbuster prostate cancer drug Xtandi (enzalutamide), which it developed in partnership with Astellas.
Xtandi may have its US label expanded in October, further boosting sales, and Medivation said the drug could be used in other indications, including breast cancer.
Also included in Medivation's business plan is talazoparib, which could be used in a wide range of oncology indications, and is in late-stage development in germline BRCA mutated advanced breast cancer.
Medivation's CEO, David Hung, said: "Sanofi's opportunistically-timed proposal, which comes during a period of significant market dislocation, and prior to several important near-term events for the company, is designed to seize for Sanofi value that rightly belongs to our stockholders."
In a response statement, Sanofi said: "Sanofi is a disciplined acquirer and has a strong acquisition track record. While, to date, Medivation has chosen not to enter into discussions regarding this value-creating transaction, Sanofi remains committed to the combination and looks forward to engaging directly with Medivation shareholders with regard to our proposal."
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