Genzyme adamant that Sanofi offer undervalues it

Genzyme has reported details of its ‘accelerating financial recovery and other factors underpinning its value’with the aim of outlining why Sanofi-aventis' offer undervalues the firm.

Genzyme has reported details of its ‘accelerating financial recovery and other factors underpinning its value’ to investors and securities analysts in New York, with the aim of outlining why the US$69 a share offer made by Sanofi-aventis at the end of August undervalues the firm.

The US biotech has issued earnings guidance of $4.30–$4.60 per share, with revenues predicted to increase to $5.0–$5.1bn in 2011, up from an expected $4.1bn in the current financial year.

Genzyme’s chief executive Henri Termeer said the board of directors was unanimous in the view that the Sanofi-aventis offer does not ‘reflect our financial recovery, the achievement of manufacturing and product-supply milestones, and the increasingly recognized commercial potential for alemtuzumab’.

Termeer said the company’s manufacturing and supply recovery is on track for Cerezyme (imiglucerase for injection) and Fabrazyme (agalsidase beta), and it expects to be able fully to supply the globa