Sanofi offers to acquire US cancer drug firm Medivation for US$9.3 billion
Sanofi, a French multinational pharmaceutical company, announced on April 28 that it has sent a letter to Medivation Inc., making a non-binding proposal to acquire Medivation for US$52.50 per share. This would represent an all-cash transaction valued at approximately US$9.3 billion. This move comes after Medivation rebuffed multiple attempts and proposals from Sanofi since March 25. The combination of these two companies represents a compelling strategic and financial opportunity to drive significant value for the respective companies’ shareholders, employees, patients and caregivers.
The proposed purchase price represents a premium of over 50 percent to Medivation’s two-month volume weighted average price (VWAP) prior to there being takeover rumors.
“Last November, Sanofi outlined our mid-term strategy which includes rebuilding our position in oncology, one of the largest and fastest growing therapeutic areas in the biopharmaceutical sector,” said Sanofi Chief Executive Officer Olivier Brandicourt. “With Medivation’s best-in-class offerings in prostate cancer, we believe a combination would benefit patients and, at the same time, generate value for shareholders of both companies.”
A San Francisco-based biopharmaceutical company, Medivation, Inc. has one marketed prostate cancer therapy, Xtandi®, and two additional oncology assets in clinical development. Sanofi has a significant presence in prostate cancer and a strong heritage in oncology.
Despite advances in cancer treatments there remains a significant unmet medical need for prostate cancer, which is the second most common cancer in men worldwide, behind lung cancer. Approximately one in seven men will be diagnosed with prostate cancer during their lifetime.
Sanofi has a strong track record of successfully integrating acquired companies, particularly in specialty care. Medivation would benefit from Sanofi’s global capabilities, significant resources, internal pipeline of assets and complementary product offerings.The transaction would create a stronger company with a complementary range of offerings to treat prostate cancer across the continuum of care, from urologists to oncologists. The proposal also has an attractive financial rationale as it would be immediately accretive to earnings and would offer value creation opportunities for Sanofi shareholders.
There can be no assurance that any transaction will result from this proposal. Sanofi is confident in its ability to close the proposed transaction and receive all necessary regulatory approvals. The transaction would not be contingent on any financing condition
Source: Sanofi
Category: Features, Pharmaceuticals
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