Tag Archives: request

Abbott Labs Will Buy St. Jude Medical For $25 Billion

Abbott Laboratories ( ABT ) agreed to buy St. Jude Medical ( STJ ) in a deal that values the maker of heart devices at $25 billion, making its biggest ever acquisition as the industry consolidates to gain bargaining power with hospitals. St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 share of Abbott common stock, representing a total of approximately $85 per share, according to a statement Thursday. Medical devices makers are merging to get access to new technology as hospitals push for lower prices. St. Jude last year acquired Thoratec for $3.4 billion, adding left ventricular pump devices that take over for a failing heart. The combined Abbott-St. Jude medical company will have a pipeline of new medical device products across cardiovascular, diabetes, vision and neuromodulation patient care, according to the statement. Abbott said in the statement it has financing for both St. Jude Medical and for its planned acquisition of Alere ( ALR ) for $5.8 billion, sending Alere shares higher in early trading on the stock market today . Abbott Chief Executive Officer Miles White declined to reiterate his commitment to the Alere deal last week on the company’s earnings call. Alere hasn’t yet filed its 10-K report with U.S. regulators and has been subpoenaed by the Justice Department. St. Jude Medical closed Wednesday at $61.95, giving the company a market value of about $17.6 billion. The stock jumped to $78.66 before the markets opened in New York. Abbott dropped 5 percent to $41.65 in early trading, while Alere rose 3.5 percent to $44.35. The acquisition will further reshape Abbott, which split off its brand name pharmaceutical business to AbbVie ( ABBV ) in 2013. Since then, the company has shied away from major acquisitions and pursued many smaller deals, even as the CEO talked often about his desire for larger purchases. Abbott has cash on hand, obtained by selling its generic drug business for medicines marketed in Europe and the developed world to Mylan ( MYL ).

Sanofi Goes Public With $9.3 Billion Bid For Cancer Drugmaker Medivation

France’s Sanofi ( SNY ) made an unsolicited offer Thursday morning of $52.50 a share cash for Medivation ( MDVN ), in a deal worth $9.3 billion. Medivation has been the subject of takeover rumors in recent weeks, with AstraZeneca ( AZN ) and Sanofi among the rumored suitors. Medivation recently released positive early-stage trial data for talazoparib, which shrunk tumors in 4 of 7 ovarian cancer patients. Medivation shot up 7.6% to 56 in pre-market trading on the stock market today . That would be a nine-month high — and above the offer, suggesting investors see a higher bid coming. The proposed purchase price represents a premium of over 50% to Medivation’s two-month volume weighted average price before the buyout talk began, Sanofi said in a statement. Sanofi stock fell 1.4% in pre-market trading. AstraZeneca fell fractionally. Sanofi CEO Olivier Brandicourt released a letter to Medivation CEO David Hung in which he said that Hung had refused to discuss the April 15 offer of $52.50. Brandicourt said he did not “understand” the delay in responding to the offer, which is why Sanofi decided to go public with the proposal.

Sanofi Offers $9.3 Billion Bid For Cancer Drugmaker Medivation

France’s Sanofi ( SNY ) made an unsolicited offer Thursday morning of $52.50 a share cash for Medivation ( MDVN ), in a deal worth $9.3 billion. Medivation has been the subject of takeover rumors in recent weeks, with AstraZeneca ( AZN ) and Sanofi among the rumored suitors. Medivation recently released positive early-stage trial data for talazoparib, which shrunk tumors in 4 of 7 ovarian cancer patients. Medivation closed up 0.4% to 52.05 on the stock market  Wednesday. But the stock has rallied strongly in recent weeks with takeover buzz swirling. The proposed purchase price represents a premium of over 50% to Medivation’s two-month volume weighted average price before the buyout talk began, Sanofi said in a statement. Sanofi CEO Olivier Brandicourt released a letter to Medivation CEO David Hung in which he said that Hung had refused to discuss the April 15 offer of $52.50. Brandicourt said he did not “understand” the delay in responding to the offer, which is why Sanofi decided to go public with the proposal.