CAMBRIDGE, Mass.—Genzyme Corp. said Oct. 7 that its board of directors has voted unanimously to reject the unsolicited $69 per share tender offer from Sanofi-Aventis, and the board recommends that Genzyme shareholders not tender their shares to Sanofi-Aventis pursuant to the offer.
The recent offer was based on identical financial terms to two previous unsolicited proposals submitted by Sanofi-Aventis, both of which were rejected by the board, according to Genzyme.
“The board remains unanimously resolute in its belief that the offer price of $69 per share is inadequate and opportunistic, substantially undervalues the company, fails to recognize the company’s plan to increase shareholder value, and is not in the best interests of Genzyme or its shareholders,” the company wrote in a news release.
In addition, the Genzyme board said it felt the offer failed to compensate shareholders for the value of Genzyme’s existing business, which delivered compound annual revenue growth of 23 percent from 2002-2009.
“This business includes a unique and longstanding leadership position in the orphan-drug market; 12 market-leading products with durable revenue streams; and a long history of research and development productivity and success,” according to Genzyme.
Genzyme’s board and management are initiating a program to communicate with shareholders regarding the intrinsic value of the company.
In the near future, Genzyme will hold an Analyst and Investor meeting in New York to provide a financial outlook and other pertinent information. The event will be webcast on the investor events section of www.genzyme.com.
