Genzyme returned Sanofi's offer of $69 per share with a little math of their own this past week. Genzyme management cited a new estimate of their 2011 earnings picture at a bullish $4.30 to $4.60 per share --that was about 20% higher than most analysts have figured.
Genzyme then noted that that Sanofi had fixed its bid by using the algorithm 20x expected 2011 earnings to arrive at the $69 per share figure. Now, with Genzyme's new earnings estimate, and sticking with the 20x assumption, Genzyme says it would be worth $89 per share or $4.2 B more than Sanofi's original $18.5 B offer.
Sanofi's turn to return. so far, the French drugmaker has indicated that Genzyme's prognositcations are optimistic. More to come I'm sure.
Posted by Bruce Lehr October 25th 2010.