- New board members may put Medivation up for sale if elected
- French drugmaker has had offer for U.S. company rejected
Sanofi is planning to nominate eight directors to replace the entire board of Medivation Inc., according to a person familiar with the matter, after its unsolicited $9.3 billion bid for the U.S. drugmaker was rejected.
The new board members could choose to put Medivation up for sale if elected, the person said, asking not to be identified as the matter is private. The current board, which includes co-founders C. Patrick Machado and David Hung, who is also chief executive officer, has determined that the proposed price substantially undervalues the company, Medivation said last week.
A spokesman for Sanofi declined to comment, as did an external spokesman for Medivation.
Sanofi, based in Paris, took its $52.50-a-share offer public in April after Medivation didn’t respond to an earlier approach and hired banks to defend itself. AstraZeneca Plc, Pfizer Inc. and Novartis AG are among firms considering a counteroffer for the San Francisco-based company, people familiar with the matter have said.
Medivation’s shares, which have traded higher than Sanofi’s offer since it was made public, rose 1.1 percent to $61.45 at 1:40 p.m. in New York. Sanofi rose 1.3 percent to 69.98 euros at the close in Paris.
The board nominations were earlier reported by CNBC.
Medivation, which has only one marketed medicine -- Xtandi, for prostate cancer -- has said Sanofi’s proposal would deny its stockholders the value of future products. The company last week reported profit before some costs of 11 cents a share, less than the 23-cent average of analysts’ estimates, according to data compiled by Bloomberg. It was the third time in five quarters that adjusted profit missed expectations.