Genzyme has gone public now to reject the notion of beginning purchase negotiations with Sanofi at their public bid price of $69/share. Henri Termeer, Genzyme CEO, is adamant that the company is NOT for sale at that price, that Genzyme is worth much more, and that the bid price has to be a lot better to even begin a serious sit down with Sanofi representatives.
So much for the opening round bluster.
In today's Pharmalot post, a survey of 129 buy-side managers indicates that more than 80% believe Sanofi will be successful in its purchase attempt - and nearly 76% believe no other biddder will muddy the waters during the process. Consensus is that the final price will settle between $74 and $77 per share - on that point Termeer would appear to be right in valuing his company.
Fierce Biotech chimes in that Termeer and his board may be in process of seeking White Knights to enter the bidding to get the bid price up. Thus, Termeer's strong public rejection of the offer so far. He says Genzyme is "not a fixer upper, this is beachfront property".
Sanofi still appears to be taking its time and can afford to wait with no other bidders in the wings. Some believe Termeer may have few options with the problematic Allston albatross around his neck and a less than committed ally in Icahn on his team.
Posted by Bruce Lehr September 1st 2010.