Genzyme Corp., sparking a potential bidding war for a promising transplant drug, launched a $380 million hostile offer to buy AnorMED Inc., a Canadian pharmaceutical company.
AnorMED rejected the overture but said Genzyme, one of the biggest biotechnology firms, intended to take its bid directly to shareholders. Genzyme, Cambridge, Mass., wouldn't comment on its next move.
Investors, however, clearly expected AnorMED to entertain even higher offers. Its shares almost doubled, to $9.90, in 4 p.m. composite trading on the American Stock Exchange yesterday. That price was well above Genzyme's offer of $8.55 a share.
The bid reflected strong interest in AnorMED's leading product, Mozobil, an infusion said to improve the success of stem-cell transplants for cancer patients. Mozobil is in the late stages of clinical trials, and AnorMED plans to seek marketing approval from the Food and Drug Administration by the end of 2007.
Kenneth Galbraith, AnorMED's chairman and interim chief executive, said the company had been in takeover negotiations with Genzyme and several other bidders beginning in October. Those discussions fell apart this spring, when dissident shareholders succeeded in replacing AnorMED's board.
Mr. Galbraith said the new board rejected an identical Genzyme bid in April. "They thought it was not appropriate to take the first offer from the first company," he said, adding that AnorMED expects to receive competitive bids.
AnorMED said in June that it would have to raise additional cash to complete development of Mozobil. The company posted a net loss of $41.5 million last fiscal year, which ended March 31.
Genzyme said it was best positioned to develop and market Mozobil, which would be its second major transplant drug. The other is Thymoglobulin, for kidney transplants, with about $150 million in annual sales, according to a spokesman.
Genzyme's shares fell 39 cents to $66.28 in 4 p.m. Nasdaq Stock Market composite trading yesterday.
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