Added by Gary Dunn on February 3, 2011
The French pharmaceuticals company Sanofi-Aventis has decided to boost the bid for Genzyme Corp, the biotech company based in the United States.
The increase, however, was not too consistent since it rose by $1 per share range. The initial bid of Sanofi was $69, whereas now it increased to $70.
According to Reuters, apart from the $1 increase, the French company has also agreed to put forth a milestone payment which would be based on performances given by an experimental drug.
The outcome of due diligence is, nonetheless, the one that will influence Sanofi’s overall evaluation for Genzyme, since the French company is looking into the financial records of Genzyme Corp.
On the other hand, Genzyme had hoped that Sanofi would increase its bid per share range to $75, according to a Reuters’ source familiar with the issue, fact that did not happen.
Based on another anonymous source, it seems that the contingent value right for Lemtrada, an experimental multiple sclerosis drug, would bring Sanofi’s bid in the high $70s.
Bloomberg reports coincide with the amounts given by Reuters’ anonymous source, by saying that the total value per share could amout about $76 or $77.