Sanofi, Medivation Start Takeover Talks -- 2nd Update
July 05 2016 - 6:46PM
Dow Jones News
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 from $52.50 a share to $58 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 05, 2016 18:31 ET (22:31 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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