Medivation Surges On Reported Pushback Of Sanofi Takeover Effort

Shares of Medivation Inc MDVN were trading up more than 11 percent in Tuesday's after-hours session, driven by a report about a "rebuffed takeover approach" from Sanofi SA (ADR) SNY.

Bloomberg reported shortly after the closing bell that Medivation, which focuses on treatments for hard-to-cure cancers, is seeking a higher price than initial proposals have indicated. Other suitors are also considering making an offer, people familiar with the matter said.

"Sanofi is working with advisers on a potential offer and hasn't ruled out making a hostile bid, the people said, asking not to be identified because the deliberations are private," Bloomberg reported. "Medivation hired defense advisers after it received preliminary interest from potential buyers, people familiar with the matter said last month."

Related Link: Why Medivation Could Be 'The Next Big Biotech'

After closing at $45.73, shares rose as much as 11 percent in the after-hours session. The stock traded recently at $49.58, up 8.4 percent.

The stock has been on the rise since mid-February; It's risen from the $28 level in that time.

In a recent research report, Credit Suisse analysts said Medivation could be worth $54-$59 in terms of operational synergies and $60-$75 with leveraged tax benefits.