Medivation, Inc. (NASDAQ: MDVN), a San Francisco-based biopharmaceutical company, announced on Tuesday that it has entered into confidentiality agreements with a number of parties that have expressed interest in exploring a potential transaction, including Sanofi, Pfizer and Celgene.
Sanofi has been pursuing for Medivation since April when it offered $52.50 a share in cash or $9.3 billion but was rejected by Medivation. Since then, Sanofi started a campaign to convince Medivation shareholders to oust Medivation’s board of directors and replace them with its nominees. Sanofi agreed to terminate its consent solicitation when entering this confidential agreement.
Xtandi, the world’s best- selling prostate cancer drug produced by Medivation, is the target for Sanofi who urges to expand its oncology sector. According to American Cancer Society, prostate cancer is the most common cancer in American Men, second only to skin cancer. About 1 man in 7 will be diagnosed with prostate cancer during his lifetime and most cases develops in older men. With an increasing aging population, the drug is expected to grow in sales. Xtandi created $2.1 billion in sales in the last year.
The confidentiality agreements include customary six-month standstill provisions and Medivation said it expected to provide each party interested in an acquisition with the opportunity to review non-public information and meet with Medivation’s management.
Kim Blickenstaff, chairman of the Medivation board, said that Medivation had “significant scarcity value as one of the only profitable, commercial-stage oncology companies”.