Sanofi tables $9.3-bn bid for US biotech firm Medivation

French pharmaceuticals giant Sanofi today tabled a $9.3-billion all-cash bid for US biotech company Medivation Inc.

The Paris-based company said that it had sent a letter to Medivation, in which it makes a non-binding proposal to acquire Medivation for $52.50 per share in cash, valued totally at approximately $9.3 billion.

The proposed purchase price represents a premium of over 50 per cent to Medivation's two-month volume weighted average price prior to there being takeover rumors.

According to the Financial Times  Sanofi's hostile move comes after Medivation CEO David Hung, who is also on Sabofi's board, told the US drug maker earlier this month that his company was not interested in discussing thmatter.

The report said, "It emerged in March that Medivation had hired bankers to defend itself against a potential takeover bid after receiving approaches from a number of possible suitors."

San Francisco-based Medivation has one marketed prostate cancer therapy, Xtandi, and two additional oncology assets in clinical development.

Sanofi's rivals like Swiss drugmaker Roche and the UK's AstraZeneca PLC have also expanded their cancer treatment drugs, and have been developing immuno-oncology treatments that uses patients own immune systems to fight cancer.

Sanofi, the world's fifth largest pharmaceutical group, said that it has a significant presence in prostate cancer and a strong heritage in oncology and the transaction would create a stronger company with a complementary range of offerings to treat prostate cancer across the continuum of care, from urologists to oncologists.

"Despite advances in cancer treatments there still is a significant unmet medical need for prostate cancer, which is the second most common cancer in men worldwide, behind lung cancer.  Approximately one in seven men will be diagnosed with prostate cancer during their lifetime," Sanofi added.