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news.Canadian biotech company AnorMed has rejected a takeover bid of approximately $380 million from Genzyme Corporation. Despite the rejection of the offer, shares in the company sky rocketed as investors speculated that sweetened offers would follow.
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AnorMed's lead product, Mozibil, is currently in a phase III trial in multiple myeloma, and a second phase III trial in non-Hodgkin's lymphoma. Dr Joe Dougherty, chairman of AnorMed's strategic initiatives committee, said that the company believes the offer undervalues the company:
“Members of the Board are unanimous in believing that the Genzyme approach fails to recognize the company’s ability to create value for shareholders by achieving clinical and commercialization milestones for its lead product Mozobil in stem cell transplants and as a chemosensitizer, and its second clinical stage product, AMD070 for the treatment of HIV,” said Dr Dougherty.
Despite the rejection of the initial approach, AnorMed said that it has signaled its willingness to negotiate with Genzyme by presenting a counter proposal that the company believes more accurately reflects its prospects. However, Genzyme has indicated its intention to forego further discussions and make an offer directly to AnorMed's shareholders.