Tag Archives: sny

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.

Biogen Q1 Earnings Beat Estimates, But Sales Miss; Stock Climbs

Big-cap biotech Biogen ( BIIB ) reported a mixed first quarter Thursday morning, and its depressed stock rose in early trading. Biogen posted Q1 earnings of $4.79 a share excluding one-time items, up 25% from the year-earlier quarter and 32 cents above analysts’ consensus, according to Thomson Reuters. Revenue rose 7% to $2.73 billion, about $20 million below Wall Street’s average estimate. Biogen did not change its full-year guidance of $11.1 billion to $11.4 billion in revenue. The shortfall came mainly in sales of multiple-sclerosis drugs, which is also Biogen’s core business. Oral drug Tecfidera grew 15% to $946 million, about $15 million short of consensus, according to Evercore ISI. Interferon products Avonex and Plegridy together sold $670 million, down 11% from Q1 2015 and more than $50 million below consensus. “The shortfall was increased by $40 million in channel inventory reduction, but also included the effect of further rebates to payers in an increasingly competitive category,” wrote Leerink analyst Geoffrey Porges in a research note. “The company’s reported EPS of $4.79 beat consensus … as the company trimmed their R&D expenses more than anticipated.” Biogen’s competition in MS comes mainly from Novartis ( NVS ) and Sanofi ( SNY ), and it might soon get more competition from Roche ‘s ( RHHBY ) ocrelizumab, which is nearing an FDA filing after performing well in clinical trials. Analyst Max Jacobs of Edison Investment Research was more blunt, calling Biogen’s Q1 “an awful quarter” that will likely bring a guidance reduction down the road. “While operating expense control helped save the quarter from an earnings standpoint, management will likely be under pressure from investors to do something drastic to right the ship,” he wrote in a research note. Biogen stock was nonetheless up 4% in early trading on the stock market today , near 277. It’s still down more than 40% from its lifetime high, hit in March 2015, as the company’s MS franchise first started showing weakness last year.