Sanofi, Medivation Start Takeover Talks -- Update
July 05 2016 - 5:55PM
Dow Jones News
By Noemie Bisserbe
PARIS -- French drugmaker Sanofi SA said Tuesday that it had
entered talks with U.S. biotech firm Medivation Inc. and increased
its offer to $58 per share.
Sanofi will offer an additional $3 per share in the form of a
contingent value right relating to the future sales of one of
Medivation's experimental drug -- a breast cancer treatment in
late-stage clinical trials.
The Paris-based drugmaker has been in pursuit of Medivation for
more than three months, in a bid to strengthen its new products
portfolio and build a competitive position in a hot market in which
it is still a small player.
Separately, Medivation said it has entered into confidentiality
agreements with a number of parties that have expressed interest in
exploring a potential transaction. Medivation added that it expects
to provide each party the opportunity to review nonpublic
information and meet with Medivation's management.
In May, Sanofi had called a shareholder vote on whether to
remove the entire board of the oncology drugmaker, after the U.S.
biotech firm's board rejected its $9.3 billion offer or $52.50 per
share. Sanofi said Tuesday that it had agreed to suspend the
vote.
Shares of Medivation rose 2.7% to $61.76 at 4 p.m. ET trading in
New York as news of the talks were reported earlier in the day by
Reuters. 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.
--Ezequiel Minaya contributed to this article.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
July 05, 2016 17:40 ET (21:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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