Genzyme, which makes drugs to treat leukemia and multiple sclerosis, has rejected the hostile takeover bid from French drugmaker Sanofi-Aventis.
After a couple of fairly sleepy years, mergers and acquisition activity has bounced back dramatically, with potential long-term consequences for the stock market. It's a rare ray of hope at a time when other economic indicators are pointing straight toward the floor.
Biotech Takeover Talk Sends Genzyme Stock Soaring
Sanofi-Aventis announced Monday it will acquire Chattem Inc. for about $1.9 billion -- paying $93.50 per share, a 34% premium over Chattem's closing price Friday. The deal will create the world's fifth-largest consumer health-care company by revenues and helps Sanofi diversify into over-the-counter and consumer brands: a strategy used by Johnson & Johnson, and one many pharmas seek to adopt before the coming patent cliff.