Wednesday, December 1, 2010
"A contingent value right would be a way to bridge a gap when different parties have different ideas on valuations," Sanofi Chief Financial Officer Jerome Contamine told Reuters on Wednesday.
"It's an interesting idea in principle," Contamine said, speaking on the sidelines of the FT Global Pharmaceutical and Biotechnology Conference.
Contaime says "CVR," but he means an earnout. He's French so we forgive him. Of course, an earnout should not replace the hard work of coming to agreement on valuation. This should be especially true with respect to Genzyme where there is a lot of public information already out there.