Blog Coverage Biotech Major Medivation Open to Takeover Talks

LONDON, UK / ACCESSWIRE / July 6, 2016 / Active Wall St. blog coverage looks at the headline from Medivation Inc. (NASDAQ: MDVN) as the U.S. company signs confidentiality agreements with Paris-based Sanofi S.A. (NYSE: SNY), Pfizer Inc. (NYSE: PFE) and Celgene Corp. (NASDAQ: CELG) among others. Register with us now for your free membership and blog access at:

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Medivation Inc.’s shares jumped after the U.S. biotech major, famous for its drugs to treat cancer, signed confidentiality agreements with multiple prospective suitors, including French major Sanofi S.A. In April, Sanofi had made a bid of $9.3 billion for Medivation; however, Medivation had declined the bid. Sanofi recently had raised its offer to $58 per share from $52.50 per share. Apart from Sanofi, which has been aiming to take over Medivation for over three months, New York-based Pfizer and New Jersey’s biotechnology company, Celgene, are among the other contenders that have signed the confidentiality agreements with Medivation.

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Equal opportunity

In a press statement, Sanofi indicated that it has been advised by Medivation that Sanofi is being given the same opportunity as others to participate in a process relating to a potential transaction. Sanofi also confirmed that on June 27 it advised Medivation that upon signing a confidentiality agreement and being provided information, Sanofi would increase its offer to $58.00 per share in cash and $3.00 per share in the form of a contingent value right (CVR) relating to Talazoparib sales performance. The agreement will allow the interested parties to scrutinize Medivation’s non-public information and interact with the head honchos of the company before the $10 billion deal negotiations start.

Sanofi’s track record a concern

Though Sanofi has ended up being on discussions of a possible buyout, trade pundits believe that it might lose out in the end owing to its track record in oncology and past failures. Medivation has previously argued about Sanofi’s offer being very low, considering AbbVie Inc.’s (NYSE: ABBV) $21 billion acquisition of California-based Pharmacylics last year, which is almost double the current bid by Sanofi.

For Sanofi though, acquiring Medivation would help them broaden their cancer drug business after its diabetes unit’s failure. Sanofi is confident that its due diligence can be quickly completed and that if an agreement is reached then Sanofi can promptly close the deal given that it has received U.S. regulatory clearance.

Medivation’s wonder prostate cancer drug — Xtandi, is estimated to generate close to $5.7 billion in global revenues by 2020 even as the company plans to come up with drugs for breast and blood cancer taking its market value to a much higher price than what is quoted.

Due to the political instability in the U.S. and Europe, the mergers and acquisitions market has been wavering, resulting in a dip of 33% in M&A deals in the pharmaceutical industry compared to last year, according to Dealogic.

Stock Performance

Medivation’s stock price jumped 2.73% to close the trading session at $61.76, with a total volume of 5.68 million shares. The biotech firm has gained 40.62% in the past three month and 27.76% since the beginning of the year.

Sanofi’s stock declined 1.03% closing the session at $41.36. The company’s stock has added 1.05% since the beginning of 2016, and 4.43% in the last three months.

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