Sector News

Sanofi and Medivation issue warring ballots as board fight begins

June 14, 2016
Life sciences

The campaign has begun. Sanofi dispatched its ballots to Medivation shareholders, arguing to replace the biotech’s board to clear the way for a buyout. And Medivation mailed its own letter arguing right back.

The two companies have been locked in a takeover fight since early this year, when Medivation first rejected the French drugmaker’s $52.50-per-share offer. As reports of Medivation talks with rival bidders surfaced, Sanofi ratcheted up the pressure by threatening to replace the smaller company’s board.

Now, the election process has begun, with Sanofi’s backing for 8 new directors on one side, and Medivation’s staunch resistance on the other.

Echoing previous statements, Sanofi CEO Olivier Brandicourt emphasized in his letter that his company is willing to raise its offer, provided Medivation sits down to talk. He contended that Medivation shareholders have told Sanofi they want the company to be included as Medivation weighs a sale.

“We have had extensive conversations with Medivation shareholders and believe that there is overwhelming support for Medivation to undertake a sale process that includes Sanofi,” Brandicourt said in a statement. “We urge all Medivation shareholders to support Sanofi’s efforts to elect directors that are committed to maximizing value.”

Meanwhile, Medivation filed its Consent Revocation Statement, required by the Securities & Exchange Commission as part of the consent solicitation process that Sanofi initiated. And it issued a letter, co-signed by CEO David Hung and Board Chair Kim Blickenstaff, to shareholders highlighting its successful prostate cancer drug Xtandi and its oncology pipeline, which could “create significant additional value” for any buyer.

The company also launched a website, MedivationForStockholders.com, to serve as a repository of its own information on the solicitation.

“We are on the cusp of creating significant additional value for our stockholders,” Medivation’s letter to shareholders stated, citing late-stage meds talzoparib and pidilizumab. “This is why we object so strongly to Sanofi’s attempt, through coercive tactics, to acquire Medivation at opportunistic, low prices.”

The biotech urged stockholders “to resist Sanofi’s attempt to capture for itself value that rightly belongs to you.”

Market watchers agree that buyers have plenty of room to pay more for Medivation, given Xtandi’s sales and the company’s pipeline prospects. But given the rush of interest, a deal may not come together very soon. RBC Capital Markets analyst Simos Simeonedis figures the contest will extend into 2017, with an auction eventually yielding a per-share price of $65 to $75, a recent investor report noted.

By Tracy Staton

Source: Fierce Pharma

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach