(PRINTWORDS NEWS) Sanofi-Aventis, the renowned French pharmaceutical company is all set to acquire Cambridge, Massachusetts based Genzyme Corp., company officials highlighted on Wednesday. The deal that is likely to be signed between the U.S. biotechnological firm and the French drugmaker is reported to be worth a whopping $20.1 billion and would also take into account other payments related to the success that the drugs manufactured by the company achieves in the due course of time.
The contract between Sanofi-Aventis and Cambridge based company comes after negotiations have been on going between the two firms over the last nine months while intense talks between company officials taking place on Tuesday before the final announcement was made on Wednesday morning. Reports say, the French drugmaker would be shelling out $74 a share in cash as well as a contingent value right (CVR) for Genzyme Corp.
The CVR is nothing but a right that can be traded to additional payments if the U.S. biotechnological firm’s multiple sclerosis drug, Lemtrada is successful in achieving the same regulatory and sales target or the production volume that the drugs, Cerezyme and Fabrazyme accomplished.
The takeover of Genzyme Corp. by the Paris, France based drug manufacturing firm would be the biggest acquisition in the pharmaceutical business since the November, 2009 takeover of Schering-Plough by Merck & Co. with a staggering $47 billion. At the same time, the acquisition is also likely to impart a significant impetus to Sanofi-Aventis in gaining a stronghold in the drug market for the treatment of rare ailments. The U.S. biotechnological company is likely to turn into the global specialist for Sanofi-Aventis in case rare diseases while sustaining a considerable presence in Boston.
