Biotechnology

Sanofi should offer Plavix insurance

16 Feb 2004

Protecting Aventis if Sanofi's profitable cardiovascular drug loses its patent would neutralise a big argument against the hostile bid. It would also be fair. Here is an innovative way of providing such insurance.

Novartis on hunt for US acquisition – report

13 Feb 2004

Has the Swiss drugs group given up on buying Roche after a frustrating two and a half year courtship? But a US acquisition would only place a Roche purchase in cold storage.

Glaxo writes off 2004

12 Feb 2004

The world s secondlargest drugs company expects stagnant profits this year as generic drug competition eats into sales. But 2004 will be a lowwater mark. And Glaxo's burgeoning pipeline makes the stock look dead cheap.

Serono’s easy growth coming to an end

3 Feb 2004

To keep up this growth rate, the company needs to acquire new drugs and soon. Europe s largest biotech has almost quadrupled profits over the past five years largely as the result of one drug.

Kuwaitis would likely sell Aventis at better price

2 Feb 2004

The drugs maker s largest shareholder, the Kuwait Petroleum Corporation, has already rejected Sanofi s initial bid as too low. Any successful merger will hinge on the Kuwaitis. Recent experience suggests they are willing to sell at a higher price.

Where’s Lazard in the Sanofi/Aventis battle?

29 Jan 2004

The firm has worked for both drugs makers in the past. So its absence in a hostile fight is puzzling. Lazard s strong relationship to Pfizer may offer an explanation. The company makes a surprisingly strong candidate for a white knight.

Aventis is worth more than Sanofi’s bid

27 Jan 2004

Sanofi's bid values the FrancoGerman drugs maker at a 11% discount to its standalone fair value that is before counting any synergies. This leaves scope for a valuebased defence.

Sanofi/Aventis merger would be good for Total

27 Jan 2004

Some shareholders fear that the French oil giant will recycle its E10bn investment in Sanofi into an acquisition splurge. It's more likely that Total management, which has established an investorfriendly reputation, will recycle the funds into share buybacks.

Bird flu hasn’t infected investors yet

27 Jan 2004

That is just as well given the financial adage about Hong Kong sneezing and the rest of the world catching cold. But any sign that the flu is spreading fast could hit Asian stocks hard, given that they re 70% higher than when the Sars panic peaked.

Sanofi’s sighting shot short of target

26 Jan 2004

The French drugs maker has made a E48bn hostile bid for competitor Aventis a measly 4% premium to Friday s close. Based on promised synergies, Sanofi could raise the bid by another 6%. But hostile paper bids are notoriously difficult to pull off. The French drugs maker has made a E48bn hostile bid for Aventis a 15% premium to its prespeculative price.

French companies learn to eat or be eaten

26 Jan 2004

Sanofi s bid for Aventis is easier to understand in the light of Pechiney s surrender to Canada's Alcan. French companies have become vulnerable to foreign bidders. Size matters if they want to keep control of their destiny.

Aventis scores early blow against Sanofi

23 Jan 2004

The two European drugs companies are squaring up for a scrap, picking advisors and quietly slinging mud. Judging by the slide in Sanofi's stock price, Aventis looks to have won the first salvo in what could be Europe's largest drugs merger.

Is Sanofi getting out while it can?

22 Jan 2004

Merger rumours continue to fly around the French pharmaceuticals group. The company could face generic competition on its bestselling drug this year. The effects would be disastrous.

Sanofi considered hostile bid for Aventis – report

19 Jan 2004

An agreement between the two majority holders of Sanofi Total and L Oreal prevented the bid from going further. With the agreement set to expire in 2004, this looks like just the start of a drawnout battle.

Skyepharma unfairly punished for its caution

6 Jan 2004

The UK biotech s stock took a hammering when it announced that delayed deals will lower 2003 revenues. A cautious approach to licensing should be applauded, not penalized.

Snia in E1bn spin-off of medical business

5 Jan 2004

The remaining divisions in the Italian conglomerate are worth only a fraction of the medical business. While the move makes strategic sense, investors should stay clear.

Aventis pours E1.5bn into pensions

17 Dec 2003

The FrancoGerman drug company will place E1.5bn into its underfunded pensions plan. While other German companies must use sharp tactics to meet liabilities, Aventis' strong balance sheet means it can easily close the gap.

Glaxo sets easy targets on Garnier pay package

15 Dec 2003

Although the agreement removes the most objectionable terms, it still rewards Garnier heavily for middling performance. The UK drug company has announced a tighter pay package for chief executive JP Garnier, but not tight enough.

Merck gives very short R&D presentation

9 Dec 2003

The US drugmaker has updated the market on its pipeline, and it is bare. With massive patent expirations around the corner, and little to replace them, Merck will be biding time for years.

Aventis sells blood plasma unit for up to $925m

9 Dec 2003

The French pharmaceutical company ducks out of the lowmargin, lowgrowth plasma market at a fire sale price. The price does not bode well for Bayer s announced plan to sell its similar business.