Sanofi has entered into a confidentiality agreement with Medivation. Under the terms of the agreement, Sanofi will be provided with due diligence access and confidential information.
According to Sanofi, Medivation is giving the same opportunity to others to participate in a process relating to a potential transaction.
On June 27 Sanofi advised Medivation that it would increase its offer to $58.00 in cash and $3.00 in the form of a contingent value right (CVR) relating to Talazoparib sales performance. This is on condition of signing a confidentiality agreement and being provided with information.
Under the confidentiality agreement, Sanofi has agreed to a customary standstill for six months subject to limited early termination events and has agreed to withdraw its consent solicitation. Sanofi is confident that due diligence can swiflty be completed and that it can close promptly given that it has received U.S. regulatory clearance.
Olivier Brandicourt, Chief Executive Officer, Sanofi, said: “Our willingness to increase our offer is driven by our in-depth analysis of the benefits and value creation potential of a combination. We look forward to discussions with Medivation on a combination which we believe is the most value creating transaction for both companies’ shareholders, and would provide Medivation and its employees with an outstanding platform to further grow its oncology franchise.”