Sanofi to buy Genzyme for US$20.1bn


16 Feb 2011

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After nine months of negotiations, Sanofi-Aventis SA is to buy Genzyme Corporation for at least US$20.1bn.

The French drug maker Sanofi first said it was interested in taking over Genzyme last June.

Sanofi announced today it will buy the US biotech group for a cash offer of $20.1bn (or $74 per share in cash) plus payments tied to the success of its drugs.

If certain targets are met by MS drug Lemtrada and other drugs Cerezyme and Fabrazyme, Genzyme shareholders will be entitled to further cash payments.

The deal was unanimously approved by both boards of directors.

Sanofi said the agreement will boost its earnings per share immediately.

“This agreement with Genzyme is both consistent with our long-term strategy and creates significant long-term value for our shareholders,” said Chris Viehbacher, chief executive officer of Sanofi-Aventis.

Article courtesy of Businessandleadership.com