Citi On Medivation-Sanofi Buyout Offer: More Bidders Likely Coming

Medivation Inc MDVN announced that it was not interested in the $52.50 per share acquisition bid made by Sanofi SA (ADR) SNY. Citi’s Yigal Nochomovitz maintained a Neutral rating on Medivation, with a price target of $37.

With the process taking a hostile turn, other bids are expected to emerge for Medivation, analyst Yigal Nochomovitz said.

Reasons For Rejection Of Bid

Nochomovitz pointed out that Sanofi’s offer of $52.50 per share was lower than Medivation’s 52-week high of $66.39. Management may have been expecting a higher price given the upcoming release of Phase II data for breast cancer.

Data in HER2 normal ER/PR+ pts is expected in the second half of 2016; and management may see this as an opportunity to extend the value of its XTANDI franchise, Nochomovitz mentioned. The company is also expecting Phase III data for talazoparib in the first half of 2017.