Under months of pressure from Sanofi as an acquisition target, Medivation has now agreed to allow the French drugmaker to look at its books. Sanofi announced on Jul. 5 it had signed a confidentiality agreement with the US biopharmaceuticals producer and pledged a customary standstill for six months, subject to limited early termination events, as well as ending its efforts to replace the company’s board of directors.

The French company expressed confidence that due diligence could be quickly completed and that a deal could be signed quickly as US regulatory clearance has already been received, and there would be no financing condition.

At the same time Sanofi said it had informed Medivation it would increase its offer to $58 per share in cash – up from $52.50 initially – and $3 per share in the form of a contingent value right (CVR) relating to the sales performance sales performance of the California firm’s ARP inhibitor talazoparib, a pipeline drug recommended for treatment of late-stage P3 breast cancer.

The new offer, amounting to around $10 billion, was immediately rejected. Medivation said it would open a data room to give not only Sanofi but other potential suitors a chance to “participate in a process relating to a potential transaction.”  It did not identify the other companies.

Earlier reports pointed to British-Swedish drugmaker AstraZeneca and Swiss pharmaceutical giant Roche as being interested in the oncology specialist with an extensive pipeline and a blockbuster drug Xtandi, on the market for treatment of prostate cancer. Pfizer recently was also named as a potential suitor, and the latest reports suggest that US biopharmaceutcal producer Celgene also may have an inside track.

In a statement, Kim Blickenstaff, chairman of Medivation's board of directors, said:  "Medivation has significant scarcity value as one of the only profitable, commercial-stage oncology companies, and management has been successfully executing a strategy that is generating outstanding returns for our stockholders. At the same time, our board remains committed to objectively considering all avenues that may enhance our ability to deliver superior value.

“Our decision to enter into these agreements is consistent with our focus on stockholder interests, and will allow interested parties to fully understand the significant value of our Xtandi franchise and the enormous potential of our pipeline, including talazoparib, our promising potential best-in-class PARP inhibitor,” Blickenstaff concluded.