Genzyme issued a statement to day that said its Board had authorized the company to sign a non-disclosure agreement with Sanofi to allow the latter to begin due diligence in preparation for buying the company.
Genzyme Lets Sanofi Conduct Due Diligence.
The news release further stated that the deal being discussed includes a contingent value right (CVR) agreement presumably for Genzyme's MS drug Lemtrada. The valuation of this drug's future revenues has been a big sticking point in negotiations up to now as the tow sides have been far apart - with values rangng from $700 M to $3.5 B from Sanofi and Genzyme respectively.
The news of the CDA covering due diligence may allow a deal to be finalized in the next week or two according to Reuters. For further coverage see the WSJ and Fierce Biotech.
Posted by Bruce Lehr Jan 31st 2011.
More on this from Xconomy ths morning (Feb 1st)
http://www.xconomy.com/boston/2011/02/01/genzyme-sanofi-deal-might-be-close-report-says/
Posted by: bigredbruce | 02/01/2011 at 10:11 AM