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Pfizer will offer Medivation shareholders $81.50 per share in
cash, a substantial premium to Sanofi SA's <SASY.PA> first offer
of $52.50 made in April that forced Medivation to put itself up
for sale.
Shares of Medivation, best known for its prostate cancer drug
Xtandi, were up 19 percent at $80.01 in premarket trade, just
shy of the offer price.
Sanofi later raised its offer to $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 breast cancer drug under
development.
However, Medivation said in July it had agreed to share
confidential information with potential buyers after Sanofi
agreed to drop a campaign to oust Medivation's board of
directors.
Reuters had reported that Pfizer, Merck & Co Inc <MRK.N>,
Celgene Corp <CELG.O> and Gilead Sciences Inc <GILD.O> had
submitted expressions of interest to acquire Medivation.
Pfizer said it expects to complete the acquisition, which was
approved by boards of both companies, in the third or the fourth
quarter.
Pfizer's financial advisers were Guggenheim Securities and
Centerview Partners, with Ropes & Gray LLP providing legal
counsel .
J.P. Morgan Securities and Evercore were Medivation's financial
advisers, while Cooley LLP and Wachtell, Lipton, Rosen & Katz
served as its legal advisers.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Don
Sebastian and Anil D'Silva)
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