Medivation Inc (NASDAQ:MDVN) confirmed that it has received an unsolicited, non-binding proposal from Sanofi to acquire all outstanding shares of Medivation common stock for $52.50 in cash.
On April 15, 2016, Medivation’s Board of Directors received a private letter from Sanofi making an indicative, non-binding proposal to acquire the Company under the same economic terms, subject to completion of due diligence and other conditions. The Company promptly acknowledged receipt of the letter and committed to respond. Consistent with its fiduciary duties, the Board, with the assistance of its independent financial and legal advisors, immediately began the process of evaluating this proposal. As today’s public disclosure of this proposal does not differ materially from the private correspondence received less than two weeks ago, the Board expects to complete its review of the proposal at a scheduled meeting today and will provide an update promptly thereafter.
There are no assurances that a transaction will be reached or on what terms. Medivation stockholders are advised to take no action at this time.
Evercore and J.P. Morgan are serving as financial advisors to Medivation, and Cooley LLP is acting as legal counsel.(Original Source)
Shares of Medivation are up over 7% in pre-market trading. MDVN has a 1-year high of $66.40 and a 1-year low of $26.41. The stock’s 50-day moving average is $44.42 and its 200-day moving average is $40.97.
On the ratings front, Medivation has been the subject of a number of recent research reports. In a report issued on April 26, William Blair analyst Y Katherine Xu maintained a Buy rating on MDVN, with a price target of $67, which represents a potential upside of 28.7% from where the stock is currently trading. Separately, on April 25, Leerink Swann’s Geoff Porges reiterated a Hold rating on the stock and has a price target of $39.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Y Katherine Xu and Geoff Porges have a total average return of 3.0% and 4.1% respectively. Xu has a success rate of 46.2% and is ranked #1297 out of 3839 analysts, while Porges has a success rate of 53.8% and is ranked #1306.
Overall, 5 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $47.40 which is -8.9% under where the stock closed yesterday.
Medivation, Inc. is a biopharmaceutical company, which is focused on the rapid development and commercialization of novel therapies to treat serious diseases for which there are limited treatment options. The company was founded by Clarence Patrick Machado and David T. Hung in October 1995 and is headquartered in San Francisco, CA.