Genzyme rejects Sanofi-Aventis offer
Biotechnology company Genzyme rejects Sanofi-Aventis SA's $18.5 billion buyout offer, saying the bid undervalues the company.
On Sunday, Sanofi-Aventis offered $69-per-share for Genzyme, which has been struggling in the aftermath of manufacturing problems for key drugs.
The move comes as Genzyme tries to bounce back from manufacturing issues with key drugs Cerezyme and Fabrazyme for genetic conditions.
In June 2009, the company shut down its Boston plant for about three months to clean up viral contamination that had been slowing production. Then in November, the Food and Drug Administration said it found tiny particles of trash in drugs made by Genzyme, including steel, rubber and fiber. The agency recommended that doctors closely inspect vials of four drugs made at the plant: Cerezyme, Fabrazyme, Myozyme and Thyrogen. The company has been restructuring its manufacturing operations since January.
