US BIOTECHNOLOGY firm Genzyme, which is fending off an $18.5bn (£12bn) hostile takeover bid from France’s Sanofi-Aventis, is considering a new deal structure that Sanofi has said it would be open to.
Genzyme has been holding internal discussions to consider the use of a contingent value right (CVR), which gives shareholders more value if the acquired company hits benchmarks.
This particular CVR would likely be tied to the performance of Genzyme drug Campath, an experimental drug for multiple sclerosis that has already been approved for cancer.
Sanofi has called Genzyme’s projection of up to $3.5bn in peak sales for Campath unrealistic, pointing to competing drugs that could steal market share.
Genzyme has dismissed Sanofi’s $69 per share bid, as it considers it too low.
Sanofi and Genzyme could not be immediately reached for comment.