PARIS (AP) — Shares in Sanofi-Aventis SA traded Tuesday near a low for the year amid new reports that the French pharmaceutical giant is close to launching an $18 billion takeover offer for U.S. biotechnology firm Genzyme Corp.
Around midday Tuesday Sanofi-Aventis shares were unchanged at €45.40 ($59.35). The stock has fallen nearly 6 percent over the last month since speculation emerged that Sanofi-Aventis was eyeing Cambridge, Mass.-based Genzyme, maker of the Cerezyme and Fabrazyme drugs to treat genetic diseases.
Earlier Tuesday the Wall Street Journal reported that Sanofi-Aventis had sent a letter to Genzyme detailing an offer of $69 a share, which would value the company at $18.4 billion.
Sanofi-Aventis spokesman Jean-Marc Podvin declined to comment. Pressed on the subject during a conference call with reporters last week, Sanofi-Aventis Chief Executive Christopher Viehbacher did not deny the reports in the Wall Street Journal and elsewhere that Sanofi-Aventis was preparing a bid for Genzyme Corp.
“It’s impossible to comment on rumor and speculation,” Viehbacher said.
With two of the French company’s top blockbusters now reeling from competition from generic rivals, Viehbacher has sought future growth by diversifying.
Since Viehbacher defected from rival GlaxoSmithKline PLC and took the top spot at Sanofi-Aventis in December 2008, Sanofi-Aventis has completed about 50 generally small- to mid-sized acquisitions and partnerships.
In a report to investors last week, Citigroup analysts Mark Dainty and Yaron Weber said they think a deal is likely, for a per-share price in the mid to high $70 range. Buying Genzyme for this amount would boost Sanofi-Aventis’ earnings, help it rebuild its drug development pipeline and speed up its transition to more sustainable growth, the analysts said.
By 2013, Sanofi-Aventis aims to be less dependent on aging patent-protected blockbusters like Plavix and Lovenox, as the company leans more heavily on six markets where it sees the most growth: vaccines, diabetes products, over-the-counter medicines, new treatments and emerging markets as well as the Japanese market.
