Analysts said earlier this week that the announcement of a deal - which many thought was being sealed at a secret Sunday meeting - may have been delayed because Sanofi found not just a few scratches, but a rusted engine when it opened Genzyme’s hood, when it began doing due diligence last week. Some predicted that Sanofi may be using the time to try to drive the price down from the reported $74 per share, plus an added conditional benefit tied to approval and sales performance of a potential treatment for multiple sclerosis.
That may well be true. Viebacher and shareholders have been playing the stingy card since Sanofi first expressed interest in Genzyme in May. But if there’s one thing that may prompt them to open up their wallets, it may be the fresh reminder of Sanofi’s vulnerabilities by way of the earnings release.
Sanofi has said it will lose one third of its 2008 sales base to generics by 2013, and the bottom line is already feeling it. Viebacher might now find it easier to convince investors that Genzyme’s pipeline of high-priced rare disease drugs is a very good deal at $74 per share.
