Genzyme rejects Sanofi-Aventis offer
On Sunday, French drug developer Sanofi-Aventis offered $69 per share for Genzyme, which has been struggling in the aftermath of manufacturing problems for key drugs. In a letter to Sanofi-Aventis, Genzyme Chairman and CEO Henri A. Termeer said the board unanimously rejected the offer. He said the board is "not prepared to engage" in negotiations with an "unrealistic" starting price.
On Sunday, Sanofi-Aventis, based in Paris, made the buyout offer following months of rumors. The offer marked a 38 percent premium over Genzyme's closing price of $49.86 on July 1, just before speculation over a deal. The deal comes as Genzyme tries to bounce back from manufacturing issues with key drugs Cerezyme and Fabrazyme for genetic conditions.
Genzyme is considered attractive because it has promising drugs for high cholesterol and other disorders in late development and it already sells some lucrative drugs for rare genetic disorders. Like other major drug developers, Sanofi has been buying smaller companies or rights to experimental drugs as it faces more generic competition for blockbuster drugs.
Source: Forbes
