Deal could cause unwanted side effects

first_img Tags: NULL whatsapp KCS-content whatsapp THE FRENCH must be returning from their month-long summer sojourn, because Sanofi-Aventis’ long-awaited bid for US-based Genzyme is finally upon us. Sanofi’s timing probably has more to do with pesky patents than the vagaries of continental holidays, however. Last week, the French drugmaker failed in a last-ditch attempt to stop the approval of generic versions of Lovenox, its blockbuster blood-thinning drug. Sanofi says it will fight on, but the Lovenox cash cow – which accounts for some $4bn (£2.6bn) of group sales – is close to death.With the cupboard marked “blockbuster drugs” worryingly empty, Sanofi has to pull something off quickly. It could continue to cut costs and push into emerging markets, a direction that has served it well so far. But neither strategy solves its central problem: the bulk of its best-selling drugs will lose their patents in the next few years. That means Sanofi boss Chris Viehbacher – an acquisitive chief executive who notched up some 33 tie-ups and deals last year – will have to hit the buyout trail once again. His reasons for settling on Genzyme are not immediately clear. The US firm is bedevilled by production problems and has a troubled relationship with regulators. But, like Ireland-based Shire, it focuses on niche high-margin treatments for rare genetic diseases, making it less vulnerable to generic rivals. In that sense, a deal makes sense. Sanofi has the scale to help solve Genzyme’s structural problems, while Genzyme makes products that are relatively safe from generic insurgents. As with all big pharma deals, there are likely to be a plethora of unknown side effects, however, meaning shareholders should read the label carefully. Monday 30 August 2010 9:02 pmcenter_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Share Show Comments ▼ Deal could cause unwanted side effects Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoBetterBe20 Stunning Female AthletesBetterBeUndoCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy FanUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndoAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldUndoTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading BlvdUndolast_img

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