Can Sanofi push a CVR on Actelion after the Lemtrada fiasco?
The buzz this morning is that Sanofi $SNY is moving ahead steadily on working out a deal to buy Actelion. And Bloomberg reports that the pharma giant has brought out its favorite M&A tool — the CVR, or contingent value right shares — to get the job done without handing over too large a premium.
Sanofi observers will well remember that the CVR is what clinched the $20 billion deal for Genzyme. But those CVRs are now trading at 38 cents after Sanofi, not known for a very effective in-house R&D group, failed to hit any of the big milestones it laid out for investors. Originally valued at $5.58, or $3.8 billion, the CVR {GCVRZ} was built around Lemtrada, which was initially rejected by the FDA, derailing the commercialization timeline. And that rejection was followed up with a lawsuit.
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