So far the San Francisco-based maker of XTANDI has received an offer from Pfizer and an improved offer from Sanofi
According to a person familiar with the matter, Medivation Inc (NASDAQ:MDVN) has stepped into the final stages of its competitive bidding process. Sources reveal that the San Francisco based biopharmaceutical company has received offers from both Sanofi SA (ADR) (NYSE:SNY) and Pfizer Inc. (NYSE:PFE).
According to the source having in-depth knowledge of the matter, the offer made by Sanofi is improved compared to that of Pfizer. The person also disclosed that a Germany based drug company has entered the bidding battle and plans to make an offer ahead of the deadline. At this point in time, the name of the bidder was not disclosed.
However, the source didn’t discuss the status of potential bids made by Gilead Sciences, Inc. (NASDAQ:GILD) and Celgene Corporation (NASDAQ:CELG), whose interest in the bidding process was mentioned in earlier media reports. Today is the deadline to submit an interest indication for the bidding process.
Shares of Medivation gained 2.52% in Thursday’s trading session to close at $65.60. The company has a total market capitalization of $10.98 billion. The stock has a 52-week high of $65.98 and a 52-week low of $26.41. The XTANDI maker reported second quarter earnings on Tuesday, which clearly exhibited why pharmaceutical giants have a keen interest in acquiring the company.
As of the Q2 report, Medivation’s prostate cancer therapy, Xtandi sales were $595 million. This was majorly due to the longer period consumption of the drug as the patients are taking it for 9 months at an average. The trend is expected to continue further, which hints toward a long term boost in Xtandi sales. Overall, Medivation revenue grew 17% year-on-year. Moreover, the company reaffirmed its 2016 guidance, which suggests nearly 35% earnings growth and 56% revenue growth.