Exclusive: Medivation succumbs to pressure to explore sale - sources

Tue May 10, 2016 12:17pm EDT
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By Greg Roumeliotis and Pamela Barbaglia

(Reuters) - U.S. cancer drug maker Medivation Inc has decided to explore a sale following a $9.3 billion acquisition offer from France's Sanofi SA and interest from other companies, people familiar with the matter said on Monday.

Pfizer Inc and Amgen Inc are among the companies that have signed non-disclosure agreements with Medivation, which allow them to obtain confidential information about the company, the people said.

The move comes less than two weeks after Sanofi made its approach public by publishing a letter to Medivation's chief executive David Hung that contained details of the offer.

However, there is still no certainty that Sanofi's rivals will press ahead with bids for Medivation, the people cautioned.

The sources asked not to be identified because the deliberations are confidential. Medivation, Sanofi, Pfizer and Amgen declined to comment.

Medivation said last week that Sanofi's $52.50 per share cash offer "substantially undervalues the company, its leading oncology franchise, and innovative late-stage pipeline." Medivation shares traded on Monday at $62.54, and were trading at around $62 in morning trading in New York on Tuesday.

Sanofi has said it is willing to raise its offer as long as Medivation engages in negotiations, and has threatened to go directly to shareholders to oust its board if it does not.

Sanofi, which is being advised by Morgan Stanley, has a track record of pushing through unsolicited deals, after buying Genzyme for $20 billion in 2011.   Continued...

French multinational pharmaceutical company SANOFI logo is seen at the headquarters in Paris, France, March 8, 2016. REUTERS/Philippe Wojazer/File Photo