1. Hap on August 16, 2010 12:46 PM writes...

Not at $80/share, I assume, and at a price S-A would pay, it would be too risky.

Maybe Genzyme is optimistic about their chances, or (more likely) their stockholders are hoping S-A will bail them out from the rest of their portfolios' losses. Good luck with that.

2. Mark on August 16, 2010 1:00 PM writes...

Actually, I think it's the perfect time for Sanofi to buy the company:

1) The manufacturing problems are depressing the price of the stock. Even with the premium paid, you're getting a pretty good deal. Combine that with the current investors who are thinking "Let's see, take $80/share now or let the current management try and get the share price back up." It's a quick way out of the investment.

2) The FDA has already laid the smack-down on Genzyme. All Sanofi has to do is make sure it CAN meet the demands of the FDA consent decree. Basically you have a problem, but the solution is laid out in front of you, you just have to figure out whether or not you can do it. The FDA basically did a good chunk of the due diligence already!

3) If there is one thing that big pharma is good at it's paperwork. In the case of Genzyme, that's exactly what they need to fix their manufacturing problems; a clear, methodical QA system with plenty of checks and balances. Plus, Sanofi has the resources ($$$) to throw at fixing these problems once and for all. Genzyme says it will take years to fix the problem, but maybe Sanofi is thinking "We can fix this in two!".

I think Sanofi looks at Genzyme right now like an old rusty 68 1/2 Mustang. The current owners are motivated to sell and nobody else wants to touch it.

Mark

3. Anon 1 on August 16, 2010 2:49 PM writes...

So, it looks like their stock price should take a tumble.