Sector News

Medivation working with JPMorgan on takeover approaches: sources

April 4, 2016
Life sciences

Medivation Inc has been working with investment bank JPMorgan Chase & Co to handle interest from other companies in a potential acquisition, but it has no plans to sell itself, according to people familiar with the matter.

The move is not uncommon in the healthcare industry. Biopharmaceutical companies such as Medivation are often approached by larger industry players. But acquisitions rarely happen without the target company cooperating.

Some of the approaches have taken place since the start of the year, the people said, without disclosing the names of the interested parties. The sources asked not to be identified because the matter is confidential.

Medivation did not immediately respond to a request for comment, while JPMorgan declined to comment.

Based in San Francisco, Medivation focuses on drugs for treating cancer. It has a market capitalization of $6.1 billion.

Sanofi SA, Roche Holding AG and AstraZeneca Plc are among the pharmaceutical companies that have expressed interest in acquiring drug makers in the United States.

Medivation has been under pressure from lawmakers, including Democratic Party presidential hopeful Bernie Sanders, a U.S. senator of Vermont, who criticized the high price of its only approved drug, Xtandi, which treats prostate cancer.

Beyond Xtandi, Medivation has a number of other potential cancer treatments in advanced stages of research and development.

The company’s stock has traded down more than 40 percent in the past year, in tandem with a broader selloff in the life sciences sector.

Earlier this week, Medivation hired Jennifer Jarrett as its new chief financial officer. She will replace Rick Bierly, who will retire in July.

By Carl O’Donnell and Greg Roumeliotis in New York

Source: Reuters

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