Genzyme Corp Chief Executive Henri Termeer is set to walk away with nearly $160 million when the sale of his company to French drugmaker Sanofi-Aventis is final -- and stands to earn considerably more should Genzyme's multiple sclerosis drug prove as successful as Termeer has predicted.
Termeer is set to receive compensation of $145.9 million from his Genzyme
The longtime CEO would also receive $12.5 million in a change of control payment if his employment were terminated with or without cause, according to the filing. Termeer has already said he would leave the company following a brief transition period, which would trigger the additional payment.
In addition to the agreed upon $74 per share price for Genzyme stock, each shareholder will receive one contingent value right (CVR) per Genzyme share, which could increase in value to a maximum $14, primarily based on the company achieving sales milestones for its experimental MS drug Lemtrada.
The CVRs will trade separately on Nasdaq.
If Lemtrada's annual sales eventually hit $2.8 billion and the company reached earlier manufacturing and regulatory goals, Termeer's take would be an additional $62.8 million from his CVRs, according to the filing.
At the time the companies sealed their deal, Sanofi CEO Chris Viehbacher joked that if Lemtrada sales actually got to $2.8 billion he would personally deliver the check to Termeer, along with a bottle of his favorite wine.
Sanofi earlier on Monday said it had extended its offer for all outstanding shares of Genzyme until April 1 from March 16.
(Reporting by Bill Berkrot; Additional reporting by James Regan in Paris; Editing by Blaise Robinson and Gerald E. McCormick)