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

July 14, 2024

Flagship raises $3.6B for biotech investing

Life sciences

Flagship Pioneering said Wednesday that it’s added another $3.6 billion to its capital base, bringing the total raised since 2021 to $6.4 billion. Meanwhile, Flagship announced more than a dozen promotions and new hires in its leadership ranks. The changes include the promotions of Lovisa Afzelius and Paul Biondi to general partner and the addition of Dina Ciarimboli as general counsel and executive partner.

July 14, 2024

Mikael Dolsten set to leave Pfizer, sparking search for CSO successor

Life sciences

After 15 years at Pfizer, including a career-defining pandemic period, the chief scientific officer will leave the Big Pharma once the drugmaker finds his successor. Dolsten joined Pfizer when the company closed a megamerger with Wyeth in 2009. Pfizer made Dolsten president of worldwide R&D the following year. The executive has stayed at the top of Pfizer’s R&D tree ever since.

July 14, 2024

CDMO Lotte breaks ground on $3.3B production plant in Korea, touts growth goals

Life sciences

Late last week, Lotte Biologics broke ground on its flagship facility at the Songdo Bio Campus in Incheon International City, South Korea. The company is pitching the production effort as a key part of its quest to become one of the top 10 contract development and manufacturing organizations (CDMOs) in the world, Lotte said in a press release.

How can we help you?

We're easy to reach