Genzyme Calls Sanofi OfferInadequate

At a recent analysts’ meeting in New York City, Genzyme executives outlined why they believe an $18.5 billion takeover bid by Sanofi-Aventis “dramatically undervalues” their company. They said they expect 2011 earnings will be more than double 2010 earnings and 20% higher than analysts’ estimates. Genzyme highlighted the blockbuster potential of alemtuzumab, its developmental drug for multiple sclerosis. Genzyme says Sanofi’s bid of $69.00 per share is 20 times analysts’ 2011 earnings-per-share consensus estimates. If the same multiple were applied to Genzyme’s expectations, it says, the offer would be $89.00 per share.