Sanofi CEO Seeks Talks With Medivation Over $9.3 Billion Offer

PARIS—Sanofi SA Chief Executive Olivier Brandicourt said Friday that he hoped Medivation Inc. management would come to the negotiating table in coming weeks after he went public with an unsolicited offer worth $9.3 billion for the U.S. biotech firm.

Medivation, a Nasdaq-listed company that focuses on hard-to-treat cancers, rebuffed a recent takeover approach by the French drugmaker.

"I hope that Medivation's management will constructively engage in the coming weeks," Mr. Brandicourt told reporters. "I went public with the offer because I wanted shareholders of both companies to be aware of our proposal," he said.

Sanofi is under pressure to launch new innovative medicines to make up for declining revenue in its all-important diabetes market, after its blockbuster Lantus insulin went off patent in the U.S.

The French drugmaker said Friday that diabetes drug sales, which account for about 20% of the company's revenue, fell 6% to €1.73 billion ($1.97 billion) in the first-quarter, hurt by a 12% drop in Lantus sales.

Higher biotech revenue and emerging markets, however, helped push total net profit 6% higher to €1.09 billion for the three months through March from €1.02 billion a year earlier.

Genzyme, Sanofi's biotech unit, posted a 16% jump in revenue to €1.37 billion, boosted by sales of its multiple sclerosis treatment, Aubagio. Sales of consumer health care products fell 8% to €905 million while vaccines sales increased 5% to €625 million.

Business net income, the company's term for adjusted income excluding the impact of acquisitions and divestments, declined 0.2% to €1.72 billion, above analysts' expectations of €1.69 billion. Sanofi's total sales fell 3% to €7.78 billion.

Sanofi said it still expected its business earnings per share to remain "broadly stable" in 2016 at constant exchange rates, "barring unforeseen major adverse events."

Write to Noemie Bisserbe at [e-mail]

(END) Dow Jones Newswires

April 29, 2016 05:45 ET (09:45 GMT)

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