Sanofi Asked Medivation to Set a Record Date for the Voting of Medivation Board

The French Pharmaceutical Company, Sanofi, takes an aggressive action on its $9.3 billion takeover bid to Medivation Inc, a cancer drug marker. Sanofi is urging Medivation to determine the line-up of shareholders who will vote on the proposal to change the Medivation board.

Medivation, a San Francisco based company, was given 10 days to set a record date. If the company fails to comply, the record date will be the first date where a signed written consent is hand over to the company.

A Medivation representative refused to give any comment on the said matter last Wednesday afternoon, June 1.

Medivation has been very vocal about their refusal to accept Sanofi’s offer.  They also call it as an opportunistically-timed and substantially inadequate offer.

In 2015, according to the regulatory filings, the biotech company gained $245 million profit and $943 million revenue from its collaboration with Japan’s Astellas Pharma.  Xtandi, the flagship oncology drug of the company used for the treatment of prostate cancer gained $1.91 billion sales in 2015.  The 2015 sales are 80% higher than the sales in 2014.

Medivation had worked with Astellas Pharma for the development and commercialization of their lead cancer drug treatment.

The proposed line up of Sanofi includes the present AMAG Pharmaceutical directors and former Shire PLC executive, Barbara Deptula and Former Chief Executive of Arch Chemicals, Michael Campbell.

Sanofi is making a $52.50 share appeal to their shareholders.  The Paris based company is following a same strategy on how they acquire Genzyme Corp. in 2011.

On Wednesday, June 1, the company’s stock closed at $41.14, which is 17% down from the past 12 months. While Medivations closed at $61.14, which is 5% less over the past 12 months.

Sanofi’s Hostile Acquisition of Medivation

Sanofi went public in their proposed acquisition of Medivation.  The company has been facing sales decline of its main diabetes drug, so they decided to make medium-size acquisitions. Some analyst describe Sanofis portfolio as weak. Sanofi has already been selling two prostate cancer drug treatments such as Taxotere or docetaxel and the newer drug Jevtana.

Taxotere is now facing competition with the generic drugs, as it already lost its patency protection. Both of these two chemotherapeutic drugs are not making good sales performance in the market because patients prefer other drug treatment.

Xtandi is a new targeted drug that is not considered as chemotherapeutic agent but the clinical trial results showed that it can help prolong the lives of patient with advanced prostate cancer. Medivation and their partner Astellas Pharma gained massive sales for this drug.

Sanofi is looking at Xtandi, as a promising addition to their prostate cancer treatment portfolios. Along these lines, they had become very aggressive and vocal in trying to buy out the company.  But Medivation stand firm in their decision that they will not sell the shares of the company to Sanofi or any other company. Aside from Sanofi, there are many other pharmaceutical companies that express their interest to acquire Medivation.

Xtandi sales may still grow if the company gains approval for selling the drug for the early stages of prostate cancer. But it will be competing with Johnson & Johnson, Zytiga and other potential new agents that are currently under development.

Leave a Reply