Termeer, 65, will get $145.9 million in cash from his shares, stock options and restricted stock units, the filing with the U.S. Securities and Exchange Commission today said. He will also receive a $12.5 million change-of-control payment if his employment is terminated when the deal closes. Termeer said Feb. 16 when the companies announced the $20.1 billion agreement that he planned to leave after a transition period.
The CEO, who held that position at Genzyme since 1985, also stands to gain as much as an additional $62.8 million in so- called contingent value rights tied to Genzyme’s experimental multiple sclerosis drug, Lemtrada.
The Wall Street Journal reports that the French drug maker Sanofi-Aventis SA, which has been trying unsuccessfully to takeover Cambridge-based Genzyme, has formed a “working group,“ to examine the sales prospects of the company’s experimental drug for multiple sclerosis, Campath.
Sanofi recently launched an $18.5 billion hostile bid for Genzyme, which Genzyme has urged shareholders to reject. Genzyme argues it is worth more than the $69 a share Sanofi is offering, and has been promoting its growth prospects in presentations to shareholders. It has focused in particular on potential sales of Campath…
But even with this attempt to break an impasse in negotiations, it looks like both company’s have dug in. The Boston Globe reports that Sanofi won’t raise it’s offer, while Genzyme continues to insist it’s worth more:
The top executive of French drugmaker Sanofi Aventis SA, refusing to budge from his $18.5 billion bid for Genzyme Corp., this morning unleashed a withering critique of the Cambridge biotechnology company’s contention that is worth about $89 a share, billions of dollars more than the $69 a share his company has offered.
Claiming that Genzyme’s fresh earnings projections, issued last Friday, are unrealistic and “ignore the market,” Sanofi chief executive Christopher A. Viehbacher told investors in a conference call that the company’s unsolicited tender offer fairly values Genzyme and is in the best interest of its shareholders. The tender offer expires Dec. 10.
The Boston Globe reports here:
Sanofi Aventis SA, the French drug maker that wants to buy Genzyme Corp., said today that it is launching a hostile takeover battle for Cambridge-based Genzyme, the largest biotechnology company in Massachusetts.
Sanofi’s latest bid does not raise the price of an earlier offer of $69 per share, which values Genzyme at $18.5 billion. Genzyme earlier rebuffed that price as undervaluing the company.
Genzyme’s genetic testing business unit operates nine laboratories in the United States, including one in Westborough that employs 500 people, a Genzyme spokeswoman said. The purchase agreement calls for North Carolina-based LabCorp to buy those facilities along with the business, she added.
In 2009, the genetic testing business had revenues of $371 million, said Genzyme, which had total 2009 revenues of $4.5 billion.
Genzyme recently rejected a takeover offer by French pharmaceutical firm Sanofi-Aventis SA, but apparently France’s largest drug maker will not be deterrred. Bloomberg reports that Sanofi has arranged $10 billion in underwritten loans to back its bid.
And closer to home, here’s a bit of smart analysis from WBUR’s election blog on how Genzyme’s troubles could impact the gubernatorial race (specifically, how the company’s recent announcement that it would layoff 1,000 employees throws water on Gov. Patrick’s Life Sciences Initiative.)
Genzyme Rejects Sanofi-Aventis Offer – The Boston Globe (AP) “Biotechnology company Genzyme Corp. said Monday it rejected Sanofi-Aventis SA’s $18.5 billion buyout offer because it undervalues the company.” (Boston Globe)
Hiring slows in state’s stalwart health care industry – The Boston Globe “Over the past six months, according to state statistics, the health care sector has had no employment growth, a stunning development for an industry that has steadily added jobs through even the worst recessions.” (Boston Globe)
Medicare director won't ID donors to think tank – Washington Times “Dr. Berwick is declining to say exactly who provided funding to the Massachusetts-based Institute for Healthcare Improvement in response to Republicans who question whether the new Medicare chief could have a conflict of interest if medical-device companies or health plans helped make his generous compensation package possible in the first place.” (Washingtontimes.com)
Plagued by production problems and nervous about competitors creeping in, Cambridge-based biotech Genzyme told U.S. patients and doctors that it will double shipments of two drugs it has been rationing for a year, reports The Boston Globe.
“The ramp-up of enzyme replacement treatments for Gaucher and Fabry diseases, a pair of rare genetic disorders, comes as the Cambridge biotechnology company continues to haggle with French drug maker Sanofi-Aventis SA over Sanofi’s proposal to acquire Genzyme.”
Patients on one of the drugs, Cerezyme, who had been taking half the normal dose since February, will get the normal dose in September, The Globe says, but patients taking Fabrazyme — which has been rationed to about 20-30 percent of the normal dose — will get only 50 percent of the normal dose in September and October. Genzyme didn’t say when patients could once again get the regular dose of their drugs.