Genzyme Wins AnorMED As Millennium Backs Out Of Bidding War
This article was originally published in The Pink Sheet Daily
Executive Summary
Genzyme gains late-stage product candidate Mozobil for approximately $580 mil.
Genzyme will gain the Phase III hematopoietic stem cell transplantation candidate Mozobil after winning a competitive bid for Vancouver-based AnorMED. The companies announced they had reached an agreement Oct. 17 for Genzyme to acquire AnorMED for $580 mil. after Millennium decided not to raise its $515 mil. bid for the firm. AnorMED's board of directors unanimously approved Genzyme's amended $13.50 per share offer and said it "represents the best alternative currently available to AnorMED shareholders." Genzyme will now move forward with the development of Mozobil and plans to commercialize the product through its existing global transplant business to hematologists and bone marrow transplant centers in more than 50 countries around the world. The stem cell product has been targeted for a launch in 2008. In studies, Mozobil has been shown to increase the number of stem cells in circulation in the blood, which prepares a patient for a stem cell transplant. In a same-day announcement, Millennium said it decided not to raise its bid for AnorMED because it "would not have been in the best interests of Millennium shareholders." Millennium is entitled to receive a $19.5 mil. break-up fee from AnorMed, the firm said. Genzyme increased its bid for AnorMED Oct. 10, offering a 12.5% premium over Millennium's offer of $12 per share (1 (Also see "Genzyme Raises Bid For AnorMED, Emphasizing Market Advantage For Mozobil" - Pink Sheet, 10 Oct, 2006.)). The company had originally made a significantly lower offer for the company in August, bidding $380 mil. ($8.55 per share) (2 (Also see "Genzyme Bids For AnorMED Eyeing Stem Cell Transplantation Technology" - Pink Sheet, 30 Aug, 2006.)). AnorMED dismissed that offer as failing to recognize the company's ability to drive shareholder value. -Jessica Merrill ([email protected]) |