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Goldman Sees Potential Medivation Buyout Value Near $70/Share

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Goldman Sachs expects potential takeout value of Medivation Inc MDVN 9.18% near $70 a share, which was much lower than the $52.50 per share offer from Sanofi SA (ADR) SNY 1.1%.

Sanofi's offer implies a $9.3 billion valuation and represents a 50 percent premium to Medivation's two-month volume weighted average price prior to takeover rumors surfacing.

Medivation, which makes prostate-cancer drug Xtandi, has been constantly on the takeover chatter as many of the global pharma giants are looking to expand their cancer drug pipeline and are in search of potential companies that fit their bill. The robust sales growth from Xtandi has made Medivation an obvious target for these firms.

Goldman, which has a Neutral rating and $44 price target on Medivation, released the following catalyst calendar for the company.

Apart from Sanofi, other companies rumored to be targeting Medivation include Gilead Sciences, Inc. GILD 0.13%, Amgen, Inc. AMGN 1.59% and AstraZeneca plc (ADR) AZN 0.27%. SunTrust analyst Peter Lawson recently said Medivation could be valued at $62 (range $51–$71) in a take-out scenario. Lawson noted that over the past three years, nine mid-cap peers have been acquired.

Evercore and JPMorgan are advising Medivation, while Cooley LLP is acting as legal counsel.

Shares of Medivation climbed 8.11 percent to $56.27. More than 10.3 million shares of the company have changed hands today, compared to its three-month average volume of 3.46 million shares.

DateFirmActionFromTo
Dec 2015Exane BNP ParibasDowngradesNeutralUnderperform
Dec 2015Morgan StanleyDowngradesOverweightEqualweight
Nov 2015BernsteinDowngradesOutperformMarket Perform

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