Here's What Medivation Said In Its Rejection Letter To Sanofi

Medivation Inc MDVN disclosed on Friday a letter it has written to Sanofi SA (ADR) SNY with regards to its acquisition offer to buy the company for $52.50 per share. Related Link: Sanofi Wants To Acquire Medivation For $52.50 Per Share Medivation started off by stating that its Board of Directors unanimously rejected Sanofi's proposal to fully acquire the company for $52.50. The board noted the offer "substantially undervalues" the company, especially its oncology franchise, and is not in the best interest of shareholders. Medivation added that it has "significant scarcity value" given the fact that it is one of the few profitable, commercial-stage oncology companies. Specifically, the company has built its XTANDI capsules into a multi-billion dollar oncology product and remains on track to grow sales by 28 percent in 2016. Moreover, Sanofi's proposal denies Medivation's shareholders the true value of its wholly-owned, innovative late stage pipeline products, including Talazoparib which "represents another blockbuster opportunity." Finally, Medivation argued that its own business plan and track record for execution could deliver superior value to its investors when compared to Sanofi's proposals. "Over the past several years, we have established a world class oncology franchise and a unique, diversified and highly-promising late-stage development pipeline," said David Hung, M.D., Founder, President and Chief Executive Officer of Medivation. "Further, we have a track record of delivering extraordinary value to our stockholders. Sanofi's opportunistically-timed proposal, which comes during a period of significant market dislocation, and prior to several important near-term events for the company, is designed to seize for Sanofi value that rightly belongs to our stockholders. We believe the continued successful execution of our well-defined strategic plan will deliver greater value to Medivation's stockholders than Sanofi's substantially inadequate proposal."