Sanofi signs takeover-related confidentiality agreement with Medivation

Sanofi has entered into a confidentiality agreement with Medivation to support its efforts to secure a takeover of the company.

Under the terms of the agreement, it will be provided with due diligence access and confidential information by Medivation, which is giving Sanofi the same opportunity as others to participate in a process relating to a potential transaction.

Sanofi has agreed to a customary standstill for six months, subject to limited early termination events, and has agreed to withdraw its consent solicitation, while also upping the financial value of its acquisition bid.

If a mutually acceptable agreement can be reached, Sanofi expects to be able to close the deal promptly, given that US regulatory clearance has already been secured and no financing conditions have been outlined.

Olivier Brandicourt, chief executive officer at Sanofi, said: "We look forward to discussions with Medivation on a combination which we believe is the most value-creating transaction for both companies' shareholders, and would provide Medivation and its employees with an outstanding platform to further grow its oncology franchise."

The planned takeover of Medivation is part of Sanofi's mid-term growth strategy and will help to expand its capabilities in the field of cancer research.