Sanofi, Medivation Start Takeover Talks -- Update

By Noemie Bisserbe 

PARIS -- French drugmaker Sanofi SA said Tuesday that it had entered talks with U.S. biotech firm Medivation Inc. and increased its offer to $58 per share.

Sanofi will offer an additional $3 per share in the form of a contingent value right relating to the future sales of one of Medivation's experimental drug -- a breast cancer treatment in late-stage clinical trials.

The Paris-based drugmaker has been in pursuit of Medivation for more than three months, in a bid to strengthen its new products portfolio and build a competitive position in a hot market in which it is still a small player.

Separately, Medivation said it has entered into confidentiality agreements with a number of parties that have expressed interest in exploring a potential transaction. Medivation added that it expects to provide each party the opportunity to review nonpublic information and meet with Medivation's management.

In May, Sanofi had called a shareholder vote on whether to remove the entire board of the oncology drugmaker, after the U.S. biotech firm's board rejected its $9.3 billion offer or $52.50 per share. Sanofi said Tuesday that it had agreed to suspend the vote.

Shares of Medivation rose 2.7% to $61.76 at 4 p.m. ET trading in New York as news of the talks were reported earlier in the day by Reuters. In after-hours trading, Medivation shares increased 1.3% to $62.65.

Sanofi's American depositary receipts declined 1% to $41.36 in New York trading.

--Ezequiel Minaya contributed to this article.

Write to Noemie Bisserbe at [e-mail]

(END) Dow Jones Newswires

July 05, 2016 17:40 ET (21:40 GMT)

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