Genzyme states case for higher offer

At its investor meeting on Friday, Genzyme Corp. (NASDAQ:GENZ) introduced 2011 guidance above existing Street estimates as evidence that it's worth $89 per share, not the $69 bid offered by sanofi-aventis Group (Euronext:SAN; NYSE:SNY). The biotech expects 2011 non-GAAP EPS of $4.30-$4.60 per share, above the Street's estimate of $3.79. This compares with guidance of $1.85-$1.90 per share for 2010. Revenue for next year is expected to be $5-$5.1 billion, up from $4.1 billion expected in 2010.

sanofi has stated that its offer represents a 20x multiple of 2011 consensus estimates. Genzyme's new guidance is about 20% above existing consensus and using a 20x multiple of that would yield an $89 price. ...