Sanofi announced that it has sent a letter to Medivation, Inc., in which it makes a non-binding proposal to acquire Medivation for $52.50 per share. This would represent an all-cash transaction valued at approximately $9.3 billion. Combining Sanofi and Medivation represents a compelling strategic and financial opportunity to drive significant value for the respective companies’ shareholders, employees, patients and caregivers.

The proposed purchase price represents a premium of over 50 per cent to Medivation’s two-month volume weighted average price (VWAP) prior to there being takeover rumors.

“Last November, Sanofi outlined our mid-term strategy which includes rebuilding our position in oncology, one of the largest and fastest growing therapeutic areas in the biopharmaceutical sector,” said Sanofi chief executive officer Olivier Brandicourt. “With Medivation’s best-in-class offerings in prostate cancer, we believe a combination would benefit patients and, at the same time, generate value for shareholders of both companies.”

Medivation, Inc is a San Francisco-based biopharmaceutical company with one marketed prostate cancer therapy, Xtandi, and two additional oncology assets in clinical development. Sanofi has a significant presence in prostate cancer and a strong heritage in oncology.

Despite advances in cancer treatments there remains a significant unmet medical need for prostate cancer, which is the second most common cancer in men worldwide, behind lung cancer. Approximately one in seven men will be diagnosed with prostate cancer during their lifetime. The transaction would create a stronger company with a complementary range of offerings to treat prostate cancer across the continuum of care, from urologists to oncologists.

Sanofi has a strong track record of successfully integrating acquired companies, particularly in specialty care. Medivation would benefit from Sanofi’s global capabilities, significant resources, internal pipeline of assets and complementary product offerings.