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Sanofi, Genzyme Deal As Soon As Tomorrow

Sanofi, Genzyme Deal As Soon As Tomorrow (Sny,GENZ)

From Benzinga Lightning Feed (February 15, 2011)

The Wall Street Journal is reporting that a deal between Genzyme (NASDAQ: GENZ) and Sanofi-Aventis (NYSE: SNY) may be announced as soon as tomorrow.

The two companies have agreed to a deal in principal, according to sources close to the situation. The deal values Genzyme at $74 per share for Genzyme, with a contingent value right (CVR) of at least an initial trading value of $2 per share.

The CVR could have an eventual value of somewhere between $5-$6 per share in Genzyme is able to meet certain sales targets, specifically its leukemia drug which is also being tested against multiple sclerosis. The CVR could be potentially worth even more over the long term if the sales are higher than anticipated, as part of the deal.

At last check, shares of Genzyme were up $2.59 to $74.36, a gain of 3.6%.

Posted: February 2011