Sanofi to acquire Genzyme for 4.7X sales multiple

Sanofi-Aventis to Acquire Genzyme (LAUREN UZDIENSKI @ HealthPointCapital)

After a long and very public negotiation, Genzyme has agreed to be acquired by Sanofi-Aventis for $74 per share, with the total deal valued at around $20.1 billion. The transaction represents a 48% increase over the close on July 2, before rumors began to circulate that Genzyme was an acquisition target, and about a 4.7x sales multiple.

In addition to the $74 in cash per share, shareholders may also receive an additional $14 a share based on milestone payments associated with multiple-sclerosis drug Lemtrada and production volumes for Cerezyme and Fabrazyme, which have supply issues over the past year and a half. Genzyme has a broad product portfolio with a particular emphasis on rare diseases, though the company also has a number of orthopedic products, including Synvisc and the autologous cartilage defect treatments Carticel and the MACI implant.

The transaction is expected to close in 2Q:11.

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