Is Sanofi preparing a bid for Oxford BioMedica?

Investors have focused their attention on Oxford BioMedica, a struggling UK developer that is the hotly rumored takeover target of Sanofi Aventis. Speculation about a possible buyout drove up Oxford BioMedica stock by 27 percent on Monday as analysts did the math on a possible deal. The company right now would probably fetch around $547 million, analysts tell the Financial Times. But a successful development program for the cancer vaccine TroVax would cost Sanofi--which partnered on the therapy--$753 million. Phase III data on TroVax is due next year while with Phase I/II data this year for a gene therapy aimed at Parkinson's.

"Sanofi Aventis has committed about £350 million and if everything is successful they are never going to pay this when the company is so cheap at the moment," says Navid Malik, an analyst at Collins Stewart. The companies, though, aren't saying anything for now.

- check out the article from the Financial Times

Suggested Articles

Galecto picked up $64 million to push its lead lung disease treatment toward an approval in Europe and fund midstage studies for its other programs.

The financing, which attracted support from Roche Venture Fund, sets Palladio up to test its vasopressin V2 receptor antagonist in a kidney disease.

A new atlas of 500,000 cardiac cells could help researchers better understand how a healthy heart operates—and what goes wrong in heart disease.