|
 The strong interest in Medivation illustrates how demand for new
cancer treatments, which can possibly add years to patients' lives,
could mean billions of dollars in revenue to the companies that own
them.
Sanofi SA, Pfizer Inc, Celgene Corp and Gilead Sciences Inc also put
forward expressions of interest, the sources said. Medivation will
have further conversations with potential buyers and ask them to
firm up their offers, some of the sources said.
The sources asked not to be identified because details of the sale
process are confidential. Medivation and Pfizer declined to comment,
while Sanofi, Celgene, Gilead and Merck did not immediately respond
to requests for comment.
Medivation, best known for its prostate cancer drug Xtandi, said in
July it had agreed to share confidential information with potential
buyers after France's Sanofi agreed to drop a campaign to oust
Medivation's board of directors.
Medivation has already rejected two acquisition offers from Sanofi,
the latest for $58 per share in cash and $3 per share in the form of
a contingent value right relating to the sales performance of
Talazoparib, a Medivation drug under development for breast cancer
treatment.
Medivation shares jumped as much as 5 percent on the news and were
trading up 2 percent at $66.59 on Wednesday afternoon following the
Reuters story, giving the company a market capitalization of $11
billion.
Sanofi is going after Medivation in order to expand in the lucrative
oncology sector, as it seeks new businesses to compensate for
flagging diabetes revenue.
For Merck, Medivation would complement its existing cancer
portfolio, which includes Keytruda, a leader in the budding immuno-oncology
treatment area that is expected to produce sales of more than $5
billion.
[to top of second column] |
In recent weeks, Merck's position in immuno-oncology strengthened
when rival Bristol-Myers Squibb Co reported disappointing results
for its rival drug, Opdivo.
In its second-quarter earnings call earlier this month, Medivation
reported continued double-digit year-over-year growth of its primary
drug, Xtandi, affirming the company’s expectations of more than 50
percent revenue growth for the year.
The San Francisco-based company also cited positive late stage data
for Talazoparib, a drug Medivation believes will account for a
significant part of the company’s long-term value.
(Reporting by Carl O'Donnell and Greg Roumeliotis in New York;
Editing by Jeffrey Benkoe and Matthew Lewis)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
