Get ready to move over, Sanofi ($SNY). A slew of Big Pharma rivals are reportedly weighing their own bids for buyout target Medivation ($MDVN).
Novartis ($NVS), Pfizer ($PFE) and AstraZeneca ($AZN) are all exploring pitching a counteroffer for the San Francisco drugmaker, which Friday rejected a $9.3 billion buyout bid from the French pharma giant, Bloomberg reports. The trio is conferring with advisers about Medivation’s value, and whether and how to move forward, though there’s no guarantee they’ll come through with their own proposals.
Astellas, which markets star Medivation cancer drug Xtandi, could also jump into the mix, analysts have predicted.
Of course, Sanofi--which saw its $52.50-per-share bid snubbed--could always raise its offer. Still, despite its desire to boost its oncology portfolio, the French drugmaker is wary of overpaying, Bloomberg’s sources say. Medivation--which said the bid substantially undervalued its business--is looking for bids of at least $65 per share, the news service reports, and analysts including Leerink Partners’ Geoffrey Porges and Canaccord Genuity’s John Newman have estimated value as high as $70.
It’s no surprise multiple drugmakers are giving Medivation a look, considering how many companies have stated a desire to expand in oncology. After last year snagging GlaxoSmithKline’s cancer drugs in a multibillion-dollar asset swap, Novartis has a big focus on the field, and Pfizer could once again be looking to bulk up its three operating units in the wake of its canceled deal with Allergan.
Meanwhile, AstraZeneca has been looking to the cancer arena to help spark the revenue turnaround CEO Pascal Soriot has been promising.
Xtandi could help any of them toward achieving their goals. The prostate cancer therapy’s sales--shared with Astellas--rang up at $1.9 billion worldwide last year, and analysts predict the med will eventually overtake first-to-market competitor pill Zytiga from Johnson & Johnson.
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