Xconomy Readers Set $20B Pricetag on Genzyme;Is That Too Rich for Sanofi-Aventis?

08/03/2010

Xconomy Readers Set $20B Pricetag on Genzyme;Is That Too Rich for Sanofi-Aventis?

When the Sanofi rumored bid for Genzyme became public last week, Ryan Mcbride asked Xconomy readers to weigh in with their thoughts on how much Genzyme was worth -- or should be worth.

Xconomy Readers Set $20B Pricetag on Genzyme;Is That Too Rich for Sanofi-Aventis?.

Readers quickly coalesced at a price approaching $20 B at $76.30 per share. However, Sanofi reportedly made a formal offer to get negotiations started at a low ball $69 per share. Reports are also circulating that Sanofi CEO Christopher Viehbacher has only been authorized by his board to go to $70 share - and has been similarly urged not to exceed that figure by Sanofi's two largest institutional investors.

Meanwhile, the Genzyme board is expected to hold out for at least $80 per share or about $21.3 B. Several analysts are said to be in agreement that Genzyme should be worth at least that amount -- and in fact carried a valuation in that ballpark in 2008 before their manufacturing issues with Cerezyme and Fabrazyme.

Icahn is said to be pushing for as high a price as possible in the 80's per share. There is also speculation that he may want to get a bidding war going with possibly GSK and/or J&J joining the party. It is unclear if either company is truly interested however.

Genzyme sitting CEO Henry Termeer is supposed to be against any sale -- certainly at the prices offered so far. So we sit and wait.

Here's several articles commenting on the action to date - from today's WSJ, from Fierce Biotech, from Business Week via PharmaGossip, Fierce Biotech commentary on WSJ story, and Michael Fitzhugh from Seeking Alpha.

Posted by Bruce Lehr August 3rd 2010.

Posted at 12:44 PM in Market Rumors, Mergers & Acquisitions | Permalink