Medivation (MDVN) Stock Up on Potential Sanofi Deal

An agreement by Medivation (MDVN) to share confidential information with French company Sanofi (SNY) has led to speculation of a potential merger.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Medivation (MDVN)  are up 1.30% to $62.56 in early morning trade after the company announced it had entered into a confidentiality pact with French pharmaceutical company Sanofi (SNY).

Sanofi stock is down 1.31% to $40.81 this morning.

Medivation, a San Francisco-based biopharmaceutical company, has similar pacts with other pharmaceutical giants like Pfizer (PFE) and Celgene (CELG), both of which have also expressed interest in an acquisition.

In April, Sanofi made a $9.3 billion offer for the company which was then rejected. In the following months Sanofi has attempted to convince Medivation shareholders to replace the company's board of directors with Sanofi's own nominees.

The chairman of the board of directors at Medivation, Kim Blickenstaff, said in a statement yesterday that the board "remains committed to objectively considering all avenues that may enhance our ability to deliver superior good."

Medivation will provide every party interested in acquiring the company the chance to review private information and meet with the board.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and increase in net income.

TheStreet Ratings feels its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: MDVN

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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