Paris: French pharmaceutical giant Sanofi vowed to open a hostile takeover battle yesterday after its $9.3bn offer for US cancer drug maker Medivation was dismissed for being too cheap.
Sanofi, warning that has a strong record in takeovers, said it will not give up its pursuit of the reluctant American prey, manufacturer of the high-priced, blockbuster prostate cancer medication Xtandi.
Medivation said its board had unanimously rejected Sanofi’s unsolicited, non-binding cash offer of $52.50 a share, declaring that it “substantially” undervalued the company and was not in the interests of shareholders. The San Francisco-based biotech firm accused Sanofi, France’s largest drugs company, of making a shrewd grab for its riches.
The US group said its Xtandi drug has racked up $2.2bn in worldwide annual net sales and it has other potential big-selling medicines in the pipeline such as Talazoparib, which aims to treat a broad range of cancer conditions.
“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,” Medivation chief executive David Hung said in a statement.
Undeterred, Sanofi vowed to take its offer directly to Medivation’s shareholders despite the board’s opposition.
“Sanofi is a disciplined acquirer and has a strong acquisition track-record,” the group warned.
“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.”
AFP
Paris: French pharmaceutical giant Sanofi vowed to open a hostile takeover battle yesterday after its $9.3bn offer for US cancer drug maker Medivation was dismissed for being too cheap.
Sanofi, warning that has a strong record in takeovers, said it will not give up its pursuit of the reluctant American prey, manufacturer of the high-priced, blockbuster prostate cancer medication Xtandi.
Medivation said its board had unanimously rejected Sanofi’s unsolicited, non-binding cash offer of $52.50 a share, declaring that it “substantially” undervalued the company and was not in the interests of shareholders. The San Francisco-based biotech firm accused Sanofi, France’s largest drugs company, of making a shrewd grab for its riches.
The US group said its Xtandi drug has racked up $2.2bn in worldwide annual net sales and it has other potential big-selling medicines in the pipeline such as Talazoparib, which aims to treat a broad range of cancer conditions.
“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,” Medivation chief executive David Hung said in a statement.
Undeterred, Sanofi vowed to take its offer directly to Medivation’s shareholders despite the board’s opposition.
“Sanofi is a disciplined acquirer and has a strong acquisition track-record,” the group warned.
“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.”
AFP
