The next pharmaceutical company to move on the merger & acquisition chessboard will probably be the French Sanofi-Aventis. At least these are the intentions of the new CEO, Chris Viehbacher, who in the presentation of the 2008 financial data said he was ready to start an intense acquisitions policy. For Sanofi it is a necessity given that between now and 2012 the patents of some products that have made the group successful will expire, three above all: Clexane, Aprovel, and Taxotere. We need to run for cover with new drugs. And so the rumors about a possible takeover of Bristol Meyers Squibb spread. However, the acquisitions policy of the new CEO is not only aimed at expanding the portfolio, but also at increasing the sales of the products already owned by the company. For this reason, on March 11, Sanofi completed the acquisition of Zentiva, a Czech generics company. In fact, when the patents of some leading products expire in 2012, it will be necessary to compete precisely on the generics market. In the group they know that these drugs risk eroding sales and try to stem the damage. With the acquisition of Zentiva, the company has the opportunity to grow in this market, becoming the eleventh group in the sector. But there is not only this advantage. Zentiva is the leader in Eastern Europe, Turkey and Russia, markets of great interest to Sanofi and which open the door to Eastern countries. Where Sanofi has already set foot. In India, the introduction of Enterogermina in 2005, a historical product of the house, has given excellent results. A few weeks ago, a test on the efficacy of a Sanofi-Aventis vaccine against dengue in children began in Thailand. It is the most common tropical disease after malaria. «This year's results have been positive – explains Viehbacher- and net profit increased by 3.2% to 7.2 billion euro. We must always come up with new solutions if we want to maintain these growth rates». But then, to avoid enthusiasm, he adds: «Let's not forget that if two ugly people get together, it is unlikely that a beautiful child will be born from their union».
Finance Affairs of 03/16/2009, article by ANNA MARULLO p. 21
AF
