Sanofi-Aventis Gets Hostile
For Genzyme Takeover
French Drug maker Sanofi-Aventis SA is trending because they are making a public bid to buy U.S. drugmaker Genzyme.
Sunday Sanofi-Aventis has made their $18.5 billion offer public after claiming many failed attempts to meet with the Genzyme management left them no choice but to take the offer to the shareholders.
The terms of the acquisition as reported by the AP are $69 per share of Genzyme, which just closed Friday at $67.62. However, Genzyme traded around $48 per share back in May before the rumor mill started to churn about Sanofi-Aventis looking to aquire some help from an American company. Sanofi-Aventis will be losing its exclusive patent on Plavix, the world's second best selling drug, in 2012 to the competition from the generic drug market. Which is what will happen next year with its Lovenox the anti-clotting drug, which earned Sanofi-Aventis $3.9 billion last year alone.
In Sunday's letter to Genzyme Chairman, President and CEO Henri A. Termeer, Sanofi-Aventis CEO Christopher A. Viehbacher wrote that the company "was left with no other choice but to take our compelling proposal directly to your shareholders by making the terms public." Genzyme officials could not be reached by the AP for a response.