Health and Healthcare
Analysts Adjust Predictions on Medivation Buyout Price
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One time when missing earnings estimates doesn’t matter much is when there is bidding war for the company. That’s the position that Medivation Inc. (NASDAQ: MDVN) found itself in after reported a substantial earnings miss after markets closed last Thursday.
The company reported adjusted earnings per share of $0.11, less than half the consensus estimate of $0.23. Shares rose anyway, up 1.3% by Friday’s close at $60.
Medivation has rejected as “opportunistic” a buyout offer valued at around $9.3 billion from Sanofi (NYSE: SNY). That was $52.50 per share, but that almost certainly won’t be enough. Big pharma guns including Pfizer Inc. (NYSE: PFE) and Amgen Inc. (NASDAQ: AMGN) have also been mentioned as possible bidders. and Medivation may be worth as much as $70 a share to some of Sanofi’s potential challengers.
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