There's a bidding war brewing for a $10 billion drugmaker
Medivation entered confidentiality agreements Tuesday, including one with Sanofi that would allow the two companies to engage in deal talks after the French drug company sweetened its $9.3 billion acquisition, Medivation said in a release.
Sanofi's follow-up bid, which was rejected by Medivation, was for $58 per share, with an additional maximum of $3 per share starting in 2022 to account for sales of talazoparib, a drug that's being studied in certain types of breast cancer, as well as other kinds of cancers including cervical, lung, and ovarian.
Medivation has already signed confidentiality agreements to discuss a potential sale with other companies as well, including Pfizer and Celgene, Reuters reported earlier Tuesday.
Medivation shares rose 2.7% after Reuters reported the confidentiality agreement, leaving Medivation with a $10.14 billion market value at the end of Tuesday. The shares rose another 1% in after-hours trading.
Reuters reporting by Michael Flaherty and Greg Roumeliotis.