Genzyme hopes for higher bid from Sanofi-Aventis
Wednesday 04 August 2010
Genzyme, the pioneering US biotechnology company whose drugs are among the most expensive in the world, is plotting tactics to extract as much money as possible for its shareholders in a takeover by the French pharmaceutical giant Sanofi-Aventis.
The two sides began formal talks after Sanofi detailed a preliminary $18.4bn (£11.5bn) offer in a letter sent to Genzyme late on Monday, but the US company's shares dipped yesterday as hopes of a bidding war ebbed. At lunchtime, they remained modestly above the value of Sanofi's $69 a share all-cash offer at $70 apiece.
GlaxoSmithKline, the UK's largest drug maker, is believed to have ruled itself out as a potential white knight, citing price and the fact that it has already expanded its portfolio of medicines for rare diseases through the licensing deal last December with JCR of Japan. Pfizer, another potential suitor, also appeared cool about joining the fray yesterday. The company's finance director, Frank D'Amelio, speaking at its quarterly results, said he was looking only at "bolt-on" acquisitions up to "several billion" dollars.
Johnson & Johnson, the maker of Tylenol cough medicine and Band-Aid bandages, also has a large war chest for acquisitions and has been named as a potential bidder.
The acquisition of Genzyme would propel Sanofi to a leading position in so-called "orphan" drugs, medicines for rare and difficult-to-treat diseases, which are given special privileges by regulators and insurers that make them more profitable. Genzyme generated sales of $4.5bn last year from treatments for rare hereditary disorders such as Gaucher and Fabry disease. Its Gaucher disease treatment Cerezyme alone generated $1.2bn of sales in 2009. Costing more than $200,000 a year, it is one of the most expensive drugs in the world.
"The blockbuster era seems to be on the wane," said Kevin Gorman at the pharmaceuticals consultancy Putnam Associates. "The dramatically unmet needs are in rare diseases."
Sanofi has set off on the acquisition trail to replace revenues lost as its medicines face competition from copycats. It issued a profit warning last month after US regulators approved a generic version of its Lovenox blood thinner. Yesterday, two major investors warned it should not dramatically raise its bid, and certainly not to the $80 per share that Genzyme's board has indicated it wants.
Swedish stars ask fans for £195 pledges on crowd-funding website
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
sportNapoli 2 Arsenal 0: Gunners must now face either Real Madrid, PSG, Bayern Munich, Atletico Madrid or Barcelona in knock-out stages
musicAs Mariah Carey and Noddy Holder rake in the royalties from their classics, why there hasn't been a decent festive hit for 20 years?
theatreAuthor Daniel Rosenthal recalls the mishaps that almost brought the curtain down on the likes of John Gielgud and Diana Rigg
lifeFull of the joys and want to help your fellow man? December isn't the time to do it
lifeAs the Royal Mail plans to phase out deliveries on two wheels, it's no wonder posties are in a spin
techLuke Blackall reports on precision engineered prams and babygros that monitor your child 24-7
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Exeter to Edinburgh and back in a day: How one fresher's lost bet left him facing a 900-mile round trip
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£45000 - £60000 per annum + Bonus and Package: Harrington Starr: Trading appli...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...
£70000 - £90000 per annum + BONUS + BENEFITS: Harrington Starr: A leading mark...
£60000 - £80000 per annum + benefits + bonus: Harrington Starr: Product Specia...