ARTICLE | Company News

Genzyme, sanofi-aventis deal

February 21, 2011 8:00 AM UTC

sanofi-aventis will acquire Genzyme for $74 per share in cash, or about $20.1 billion, plus a contingent value right worth up to $14 based on milestones through 2020. The cash portion is a 48% premium to Genzyme's close of $49.86 on July 1, before rumors surfaced that sanofi was considering an acquisition of a U.S. biotech company, including Genzyme.

The pharma reiterated plans to make Genzyme its global center for excellence in rare diseases and said it will retain Genzyme's name and location. sanofi expects the acquisition to be accretive to "business net" EPS in the first year after closing, adding €0.75 to €1 per share to "business net" earnings by 2013. sanofi said business net EPS excludes costs associated with acquisitions and other non-ordinary costs. ...