bidding for San ause it sells a g company a ance, which is on unsolicited g the offer ow as $26.41 in deal, Medivation edivation, "we in the best on hat could pose a more than ave overpaid. (It ws article; for ndicators that izer has hired mation reported aled the m, Sanofi will al bid), or pass. happens, s will be fits (before ets what will www. 't launch Table 1: Summary of Annual Profits Medivation profts* J&J profits Medivation profts* J&J profits Medivation Acquired $1 b $1 b $1.55 b $0.45 b Medivation Not Acquired $0.7 b $1.3 b $0.4 b $1.6 b Medivation's profits go to its acquirer if either Pfizer or Sanofi acquires it. All profits annual, and do not account for fixed costs such as acquisition, clinical als, fines, etc. In order for J&J to launch this new drug, however, they'll still need to spend $6 billion for safety testing, final rounds of clinical trials, and marketing to launch the drug, so they're waiting to see whether Medivation gets acquired or not. Pfizer wants you to use game theory to deter