French Sanofi-Aventis to buy Genzyme for $20.1 bln cash
Sanofi-Aventis said Wednesday it has also agreed to make additional cash payments to Genzyme shareholders contingent on the success of several of the Cambridge, Massachusetts company's drugs.
The announcement comes after nearly nine months of back-and-forth between the two companies, with Sanofi-Aventis finally deciding Genzyme's portfolio of rare disease treatments was worth stumping up an extra five dollars a share to its original $69 per share offer.
The agreement "will create a meaningful new growth platform for Sanofi-Aventis while expanding our footprint in biotechnology," Viehbacher said in a statement.
Termeer will step down as chairman and CEO of Genzyme following completion of the deal, but will keep a consulting role as co-chairman with Viehbacher of an integration steering committee.
Genzyme's drugs for rare genetic disorders are in a hot niche for big pharmaceutical companies trying to diversify beyond blockbuster pills that get slammed by cheaper generic rivals after a decade or so. Genzyme won U.S. approval last May for a new drug for Pompe disease, an often fatal disorder in which limb and respiratory muscles steadily weaken. Its experimental drug for multiple sclerosis is getting an expedited U.S. review.
The deal gives Genzyme shareholders one "contingent value right" for each share owned. These CVRs give holders the right to cash payments based on Genzyme meeting certain goals, including raising production levels for Cerezyme and Fabrazyme, getting final FDA approval for multiple sclerosis treatment Lemtrada, and higher sales targets.
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