Sources familiar with the matter revealed that Medivation rejected a recent takeover approach from Sanofi, Bloomberg reported Tuesday. The sources noted that Sanofi, which is working with advisers on a potential offer, has not ruled out a hostile takeover attempt. Shares in Medivation climbed as much as 11 percent on the news.
The sources said Medivation is seeking a higher price than the one offered in the initial proposals, adding that other suitors are also considering submitting bids.
Medivation markets the cancer therapy Xtandi, which is approved in the US and EU for the treatment of metastatic castration-resistant prostate cancer, in collaboration with Astellas. Earlier this month, the European Medicines Agency's Committee for Medicinal Products for Human Use issued a positive opinion recommending the inclusion of clinical data indicating the superiority of Xtandi over bicalutamide.
Commenting on the news, JMP Securities analyst Michael King suggested that the decision by European regulators makes Medivation a more attractive takeover target. Meanwhile, BTIG analyst Hartaj Singh recently compared Medivation to Pharmacyclics, which was purchased by AbbVie last year for $21 billion. "Both companies have an approved product that is best in class, torrid sales growth, future indication expansion potential," Singh remarked.
For related analysis, see ViewPoints: Medivation steels for a takeover fight – on the off chance one emerges.
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