Earlier this month French pharmaceutical giant Sanofi Aventis acquired locally based Genzyme Corp. This article from The Wall Street Journal has all the details of the major biotech acquisition.
Acquisitions happen all of the time in pharmaceuticals and biotech. Why is Sanofi's acquisition of Genzyme worth talking more about?
1) It positions an otherwise French based company in the east coast hub of biotech in the U.S. : Cambridge. This greatly improves Sanofi's position as they will have their hand on the pulse of the U.S. biotech industry. They will be more able to communicate and collaborate with U.S. based researchers.
2) The acquisition gives Sanofi a biotech arm. Genzyme specializes in biological drugs and enzymes that treat very rare diseases like Gaucher's Disease and Fabry Disease. Sanofi now has a position in the orphan drug market (drugs with very low patient populations).
3) Genzyme will keep its name and identity as a producer of orphan drugs. It will operate as a separate unit of Sanofi and will retain all current employees.
This acquisition was a major deal and one that has been looming for several months. Sanofi looks to be positioning itself to compete with other major U.S. drug companies. Looking at the terms of the deal and the benefits: Do you think Sanofi made a wise choice in acquiring Genzyme?
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