Another start to the week, another mega deal, as companies continue to opt for mergers and synergies and cost savings, as opposed to actual investment.Bloomberg:
French drug giant Sanofi-Aventis SA on Sunday publicly launched its $18.5 billion cash bid for American biotech firm Genzyme Corp. — a move that follows months of rumoured interest and failed attempts to bring Genzyme’s management to the table.
Under terms of the proposed acquisition, Genzyme shareholders would receive $69 per share, representing a 38 per cent premium over Genzyme’s closing stock price of $49.86 on July 1. That’s the day before speculation began to swirl that Sanofi was looking to buy an American drugmaker, possibly Genzyme, in a bid to help replace revenue being lost to mounting generic competition. Since then, the French company unexpectedly was faced with generic competition for its blockbuster injected anticlotting drug, Lovenox, which brought Sanofi $3.9 billion last year. Its blood thinner Plavix, the world’s second-bestselling drug, has patent protection only until 2012.
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