Sanofi-Aventis gets EC approval for Genzyme bid; links with UCSF for early-stage research

French drug major Sanofi-Aventis (Euronext: SAN) has cleared one hurdle in its quest to acquire US biotech firm Genzyme (Nasdaq: GENZ), with the European Commission yesterday approving the deal on competition grounds.

This is somewhat academic at this point since Genzyme’s board has still refused to accept the $69/share, or $18.5 billion in total, which it views as inadequate, although this week the two firms have started talks based on a contingent value rights plan relating to the potential value of alemtuzumab in multiple sclerosis that could lead to resolve their differences (The Pharma Letters January 10 and 11).

The Commission concluded that the acquisition of Genzyme would not significantly impede competition in the European economic area, declaring in a statement: "The Commission's examination has shown that the proposed transaction would not lead to significant combined market shares in the product categories where the parties' activities overlap. In addition, the proposed transaction also does not raise concerns in the treatment of multiple sclerosis, where both parties are developing treatments. In all cases there will remain a sufficient number of other credible competitors."