Sanofi, Pfizer, Celgene may each pursue Medivation takeover

San Francisco’s Medivation (MDVN) yesterday signed confidentiality agreements with several pharmaceutical companies, including Paris-based Sanofi (SNY).

Before entering into the confidentiality agreement with Sanofi, Medivation received from Sanofi, and Medivation’s Board of Directors unanimously rejected as not in the best interests of the company and its stockholders, a new unsolicited proposal to acquire Medivation.

Medivation had previously rejected Sanofi’s bid of $52.50 a share in cash as inadequate.

Medivation aims to provide equal opportunity to all the parties interested in potential transaction, to meet with the management and review all the non-public information.

Although Medivation hasn’t specifically stated it, at least two of the other companies, according to Reuters, are Pfizer (PFE) and Celgene (CELG). Sanofi agreed to terminate its consent solicitation when entering this confidential agreement.

Sanofi said it was confident that its due diligence can be completed and that it could close a deal with Medivation quickly given that it had received USA regulatory clearance and there was no financing condition.

Those who follow Medivation say the detail of Wednesday’s presentation could mean that the company is hinting at its value to the companies who are considering an offer for Medivation.

Sanofi had been going hostile, trying to push its own board members into Medivation to stage a coup, but it seems the PARP data, and Medivation’s resolve, has dampened Sanofi’s aggressive tactics as it has now dropped its efforts to oust the company’s directors.

That said, Kim Blickenstaff, Medivation’s board chairman, opened the door a crack to a potential acquisition (whether from Sanofi or others), showing more willingness to engage than in other previous statements.

But he added that it is also committed “to objectively considering all avenues that may enhance our ability to deliver superior value”. “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”.