Genzyme snubs Sanofi-Aventis' $18.5 billion offer; French drugmaker reports good data for MS drug teriflunomide

31 August 2010

It was a bad and a good news day yesterday for French drug major Sanofi-Aventis (Euronext; SAN), when its $18.5 billion takeover offer for troubled US biotechnology firm Genzyme (Nasdaq: GENZ) was rejected (The Pharma Letter August 30), but the firm reported positive preliminary Phase III results for its multiple sclerosis drug candidate teriflunomide.

Genzyme's shares rose 3.4% to $69.91 near close of US trading yesterday, while Sanofi-Aventis edged 0.7% higher to 45.56 euros on the Paris exchange.

Genzyme confirmed that it had received an unsolicited, non-binding proposal from Sanofi-Aventis to acquire all the outstanding shares of Genzyme for $69 per share in cash (a 38% premium to Genzyme's price ahead of the speculation about a takeover bid from the French company). The Genzyme board of directors, which met on Sunday night following Sanofi-Aventis' announcement, unanimously affirmed its previous rejection of the proposal.

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Chairman, Sanofi Aventis UK