Sanofi Continues $9.3 Billion Takeover Bid of MedivationBy
In its continuing interest to acquire the biopharmaceutical company, Medivation, Sanofi has filed an investor presentation with the US Securities and Exchange Commission in connection with its proposed $9.3 billion acquisition of Medivation. Medivation has thus far rejected Sanofi’s interest in acquiring the company, first rejecting a proposed offer in late April and again in early May. Sanofi then took the strategy of seeking to replace the Medivation board, a process that is expected to end no later than August 1.
With respect to replacing the Medivation board, Sanofi anticipates filing definitive consent solicitation materials in mid-June 2016. Sanofi signed a consent on June 3, 2016 for the shares it owns in Medivation and therefore expects that the 60-day consent solicitation period will conclude no later than August 1, 2016.
The SEC filing by Sanofi makes the case for Sanofi’s acquisition of Medivation. In addition to providing what the company calls “compelling strategic and financial benefits for Sanofi and Medivation shareholders,” Sanofi noted that its proposal is not subject to any financing condition and the company is confident in its ability to receive all necessary regulatory approvals. Sanofi also said that it would be in a position to increase its offers and is willing to enter into a customary confidentiality agreement with Medivation, which would include a reasonable standstill to give time for Medivation to conduct a sale process.
Medivation’s key product is Xtandi (enzalutamide), a drug to treat prostate cancer, for which it is partnered with Astellas. In its first-quarter earnings release, Medivation reported that US net sales of Xtandi, as reported by Astellas, are expected to range between $1.425 and $1.525 billion in 2016.