Sanofi-Aventis SA and Genzyme Corp are likely to approve a takeover of the US biotechnology company today and are discussing a price of about $74 a share plus potential additional payments tied to the performance of a Genzyme drug, said four people with knowledge of the plan.
A so-called contingent value right, a tradeable contract tied to Genzyme’s experimental multiple sclerosis drug Lemtrada, may be valued at about $3 when it begins trading and have a higher nominal value, said three people, who declined to be identified because the process is confidential.
The companies’ boards are scheduled to vote on the deal today and may make an announcement on February 7, said the people. Sanofi is still working on its review of Genzyme’s business, an agreement hasn’t been reached, and terms could still change.
“As we have previously said, we’ve signed a confidentiality agreement with Genzyme and are continuing to review non-public information,” Jean-Marc Podvin, a spokesman for Paris-based Sanofi, said in a telephone interview. “Those talks continue to progress. We have no further comment.”
Bo Piela, a spokesman for Cambridge, Massachusetts-based Genzyme, declined to comment. Excluding the CVR, a deal may value Genzyme at about $19.2 billion. Genzyme rose 14 cents, or 0.2 per cent, to $73.40 in Nasdaq Stock Market trading on February 4. Sanofi gained 30 cents, or 0.6 per cent, to ¤50.30 in Paris.
Acquiring Genzyme, the world’s largest maker of medicines for rare genetic disorders, would help Sanofi CEO Chris Viehbacher offset revenue losses as some of Sanofi’s biggest-selling products face competition from generic versions. Sanofi would gain treatments for Fabry, Gaucher and Pompe diseases.
“Genzyme is a good deal for Sanofi,” Frederic Aubel, a sales trader at Global Equities in Paris, said in a telephone interview. “It seems as if they will be paying a good price, and the CVR will protect them from potential bad surprises.”
