Shares of Genzyme rose in early trading Monday after the company confirmed it is cooperating directly in talks with French drugmaker Sanofi-Aventis for a potential acquisition of the Cambridge, Mass.-based biotech firm.
Genzyme cooperating in acquisition talks with Sanofi
Genzyme, which is known for developing drugs for rare diseases, opposed an $18.5 billion hostile bid from Sanofi in October to buy the company for $69 per share, saying the offer undervalued the company's future outlook by as much as $20 a share.
In a public statement Monday morning, Genzyme confirmed reports that it was now cooperating directly in takeover talks with Sanofi officials after the two sides reached an understanding regarding the potential future value of a compound that Genzyme officials have been testing for use to treat patients with multiple sclerosis.
Genzyme shares rose 2% Monday morning in trading on the Nasdaq, while Sanofi stocks slipped 1%.
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