As time runs down on Sanofi-Aventis' ($SNY) $69-per-share offer for Genzyme ($GENZ)--the offer expires Dec. 10--both sides are still far apart on an agreement. "I talk to these shareholders, I know them, and it's very clear from them that $69 is just not the price. It's not even a good starting point," said Ralph Whitworth, a Genzyme board member and shareholder, to CNBC; still, Sanofi is unlikely to budge. And one of the biggest sources of financial disagreement is Genzyme's multiple sclerosis drug, Campath.
Genzyme representatives have suggested a new offer with a contingent value right (CVR) that would reward shareholders if Campath does well in the market. The company believes the drug could reach $3.5 billion in sales, which could amount to a $20 CVR per share. But Sanofi doesn't believe a deal containing a CVR, even at $5 or $10 per share, will go through. "Either you believe in something and you buy it or you don't buy it," a source told the Financial Times.
Genzyme's stock value has not fallen below Sanofi's $69 offer price. But the company is unlikely to find better offers from Pfizer ($PFE) and Johnson & Johnson ($JNJ), who both considered the company, according to FT.