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Sanofi extends Genzyme bid again

Sanofi extends Genzyme bid again
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French drugmaker Sanofi-Aventis has extended its offer for US biotech firm Genzyme for a second time, as they continue talks on a deal.

The 13.6 billion euro bid will now run until mid February.

Genzyme, which specialises in treatments for rare diseases, says Sanofi’s bid is too low. The two cannot agree on the value for Genzyme’s experimental multiple sclerosis treatment Lemtrada.

Genzyme has forecast peak annual sales of $3.5 billion for Lemtrada, while Sanofi, using the average outcome of several analyst estimates, expects sales of about $700 million.

Talks centre on the possible use of contingent value rights (CVR), an extra fee shareholders will receive if Lemtrada hits certain milestones.

A CVR would come on top of Sanofi’s cash bid, which analysts widely expect will be raised.