According to Reuters (citing a Le Figaro article), Sanofi could announce a deal to acquire Genzyme by next week. The sides are considered very close. The deal will likely call for a cash payment in the $72-73 per share range with another component based on a CVR for Lemtrada in the $2-5 per share range depending on milestones achieved.
Thus the final deal will have a cash plus CVR value in the high $70's (up to $78) per share. Genzyme is pushing for highest cash possible and smaller CVR while naturally Sanofi would like to lower cash and offer higher CVR. It would be good for Sanofi to be able to announce a deal with its earning call scheduled on Wednesday nof next week when it is also expected to report a drop in earnings of 3.2% per share n the 4th quarter.
Posted by Bruce Lehr Feb 3rd 2011.