Business news compiled by Sherin Dev
Sanofi-aventis(EURONEXT: SAN and NYSE: SNY) and Genzyme Corporation (NASDAQ: GENZ) announced today that they have entered into a definitive agreement under which sanofi-aventis is to acquire Genzyme for $74.00 per share in cash, or approximately $20.1 billion.
Christopher A. Viehbacher, Chief Executive Officer of sanofi-aventis said: “This transaction will create a meaningful new growth platform for sanofi-aventis while expanding our footprint in biotechnology. We expect it to be accretive from year one, and the CVR structure, which served as an important value bridge between our two companies, rewards both Genzyme and sanofi-aventis shareholders,particularly if Lemtrada™ outperforms the market’s current expectations.”
Genzyme and sanofi-aventis will immediately begin integration planning, including the formation of a joint Integration Steering Committee. Henri A. Termeer will resign as Chairman of the Board, President and Chief Executive Officer of Genzyme following the close of the transaction, but will advise on the integration in his role as Co-Chairman of the Integration Steering Committee with Christopher A. Viehbacher.
The deal is the second-biggest in biotech history and gives France’s Sanofi, which has pursued Genzyme for nearly nine months, a foothold in the market to treat rare diseases. It will help Sanofi compensate for declining revenue from drugs that have lost, or are set to lose, patent protection.The CVR runs until the end of 2020 and entitles holders to a series of payments worth up to USD 14 in total, depending mainly on the success of Lemtrada.
Read more directly from Sanofi
1. Sanofi-aventis to Acquire Genzyme for $74.00 in Cash per Share Plus Contingent Value Right