Although not much has been said about job losses on the part of Medivation-likely because until this most recent news, the company has seemed adamantly opposed to the merger-Sanofi has been cutting jobs since late a year ago.
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Before entering into the confidentiality agreement with Sanofi, Medivation received from Sanofi, and Medivation’s Board of Directors unanimously rejected as not in the best interests of the company and its stockholders, a new unsolicited proposal to acquire Medivation. The French company was also offering an additional $3 per share in contingent consideration linked to future sales of an experimental drug (a breast cancer treatment for breast cancer) of Medivation.
Under the agreement, Medivation will provide Sanofi with confidential information and due diligence access.
San Francisco, California based biopharmaceutical company Medivation Inc. has signed confidentiality agreements with a number of suitors.
Medivation said on Tuesday it expected to provide each party interested in an acquisition the opportunity to review non-public information and meet with Medivation’s management. Sanofi’s American depositary receipts declined 1% to $41.36 in NY trading.
Medivation shares rose more than 4 percent Tuesday afternoon before losing some ground.
Pfizer and Celgene did not immediately respond to requests for comment. Meetings with Medivation’s management will be scheduled soon, the company said.
Medivation had previously rejected Sanofi’s bid of $52.50 a share in cash as inadequate, leading Sanofi in late May to propose eight candidates to take over Medivation’s board.
“Medivation has significant scarcity value as one of the only profitable, commercial-stage oncology companies…At the same time, our Board remains committed to objectively considering all avenues that may enhance our ability to deliver superior value”, Blickenstaff said.
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Olivier Brandicourt, Chief Executive Officer, Sanofi, added: “We are pleased to have the opportunity to engage with Medivation”.
