Is Sanofi's $30 billion deal too much?

Not long ago, Johnson and Johnson announced that it was withdrawing from takeover talks with Aetlon because of a price problem. The latest news is that another pharmaceutical giant is in takeover talks with Aetlon, a company that was not the only company to have been involved in the negotiations between Johnson and Johnson and Aetron.
price was the main reason for the collapse of the Johnson-Johnson and Aco-Tyrone talks, which are understood to have resulted in a $27 billion offer. Clearly, if Sanofi doesn't want to repeat Johnson's mistakes and successfully bring Ekateron into his arms, $27 billion is just the basic threshold. According to Reuters, Acoteron is confident that the company's offer will be set at no less than 250 francs per share, and Wall Street sources say Sanofi's overall offer should be no less than $30 billion.
but it's still unknown whether Sanofi will finally be able to hold the beauty. Jean-Paul Clozel, CEO of Acoteron, has been opposed to the acquisition and has repeatedly expressed a desire for the company to remain independent. In addition, some analysts believe that the $30 billion price is too high, at which price to buy a biopharmaceutical company is likely to be the "wrong head." It is estimated that $30 billion is equivalent to 13 times Aetlon's sales and 30 times its profit. Before Johnson and Johnson's talks broke down, Aetlon had a market capitalisation of about $20bn. "Obviously, $30 billion is a very high figure."
Swiss drug company Acoteron is committed to the development of drugs for rare diseases, particularly in the treatment of pulmonary hypertension (PAH) caused by high blood pressure, and about half of the company's revenue comes from the pulmonary hypertension drug Tracer. In addition, Acoteron has launched two other new drugs, Opsumit and Uptravi, to treat pulmonary hypertension in case of future generic competition from Tracer.
is a problem for Sanofi, which wants to seek to strengthen its business beyond diabetes. The acquisition of Acoteron could lead to rapid sales growth for Sanofi, while other drugs under development, including multiple sclerosis drugs developed in Phase 3, are also in line with Sanofi's current product line needs.