As indicated yesterday, Genzyme's board quickly rejected the $18.5 B bear hug letter offer it received from Genzyme on Sunday. Genzyme spokemen cited the offer as undervaluing their company. As reported in the WSJ Health blog this morning, they cite examples such as their Campath treatment for MS - which is in phase III trials and which they expect to realize annual sales of more than $3 B - as a reason why the offer is low ball.
This however may be slight of hand at play as some analysts doubt the drug will ever reach $1 B. Its commercial fate is by no means a certainty and it will not reach the market until at least 2012 if all goes well from Genzyme point of view.
Posted by Bruce Lehr August 31st 2010.