Sanofi Gets Control On Genzyme, CVR's Starting To Trade (SNY, GENZ)

Sanofi-Aventis

said it now has Genzyme

under

and the contingent value rights (

) are going to start trading today under the "GENZ" ticker. Genzyme and Sanofi-Aventis have been the subject of much

over the

as Sanofi-Aventis had bid for Genzyme what the biotech company was a

at $69 per share. Shareholder will get $74 per share for their Genzyme shares, but they also will receive one certificate per share entitling them to future payments if certain milestones are met. The CVR could be worth as much as $14 if all targets are met by specific Genzyme treatments. "Up until now, transactions of 1, 2 billion, well, that doesn't prevent the group from being flexible, but 20 billion, that stops us in fact from doing other transactions," said Sanofi Chief Executive Chris Viehbacher, with regards to other deals. "Sanofi-Aventis is a very complicated name to say in several languages, in China, as in the United States, and with the acquisition of Genzyme, in the end we said, well, we have a bigger family and now in the future we are the Sanofi family," Viehbacher said. The CVR runs through 2020, and is keyed towards production levels of Cerezyme and Fabrazyme, and Genzyme's Lemtrada clearing FDA approval.