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.
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.