Sanofi-Aventis and Genzyme are continuing to hold talks about a potential merger that would eventually value Genzyme at more than Sanofi’s current $69-a-share offer. Representatives for the two drug makers are continuing to center on the potential use of a contingent value right, in which a buyer agrees to make additional payments if its target reaches certain milestones.
In Genzyme’s case, the C.V.R. would be tied to Campath, a drug meant to treat leukemia but also being tested for its uses against multiple sclerosis. It isn’t clear how much the C.V.R. would ultimately be worth, though one person said that any deal’s initial value would be well below the $80-a-share.
Still, the two sides have continued talks, months after Sanofi took its $69-a-share offer public after being rebuffed by Genzyme’s board. Sanofi’s current tender offer for Genzyme shares, already renewed once, expires on Jan. 21, though it may be extended yet again.
At the least, the talks could give the two companies’ chief executives something to talk about next week: Both Chris Viehbacher of Sanofi and Henri Termeer of Genzyme are scheduled to speak at a JPMorgan Chase health care conference in San Francisco.
Read the previous article on Sanofi-Genzyme Deal..
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