Sanofi-Aventis has wrapped up its review of Genzyme's operations. So why is there no deal yet? The Wall Street Journal's sources say the two potential merger partners still haven't agreed on a firm price.
Sanofi didn't turn up any big problems during due diligence, the sources said. But as the WSJ points out, Sanofi may have found reason to change its most recent offer. And if that's the case, it'll have to persuade Genzyme that the change is fair. The two companies are still talking and hope for a deal later this week.
Of course, Genzyme's opening its doors for due diligence always involved the risk that Sanofi wouldn't be satisfied; the company suffered a shutdown at its Allston Landing plant back in 2009 and has been working to revamp the facility, shuffle manufacturing, and resolve drug shortages ever since.
Meanwhile, Sanofi isn't sitting on its hands, M&A-wise. Les Echos reports the French drugmaker is looking at more than €1 billion worth of acquisitions in the eye-care arena, including three companies in the U.S. and another in Israel. That's $1.36 billion, which would be paid out over three years, because the deals would be structured with upfront and performance-based payments, the newspaper said.