Sanofi change may put M&A back on agenda -analysts
LONDON, Sept 10 (Reuters) - The appointment of a new chief executive at Sanofi-Aventis (SASY.PA) could put large-scale deals back on the agenda for the French drugmaker, some industry analysts and bankers said on Wednesday.
With no quick fix to Sanofi's structural problems of a poor quality new drug pipeline and threats to existing products, incoming CEO Chris Viehbacher may have to look to deals to fuel growth, by adding products and stripping out costs.
"Given Viehbacher's track record, it is reasonable to assume that he will sweat U.S. assets, focus more on cost savings and drive in-licensing activities," Deutsche Bank analyst Michael Leuchten said.
"But this will unlikely suffice in the near-term and further acquisitions within pharma and possibly outside pharma are likely," he added.
"A big-cap merger may also be back on the cards -- and Sanofi's chairman does not seem averse to this."
Sanofi has long been tipped as a buyer for its U.S. partner Bristol-Myers Squibb (BMY.N) with a current market value of around $44 bln, with which it sells the $8 billion-a-year blockbuster blood-thinning drug Plavix.
"A lot of people are surprised that deal hasn't happened yet," said one healthcare banker.
Speculation of such an acquisition was intense in early 2007. But while Sanofi's powerful Chairman Jean-Francois Dehecq was widely thought to have been in favour, analysts believe outgoing Chief Executive Gerard Le Fur wanted to focus on internal research and development.
Since then, a number of Sanofi's internal research projects have come unstuck, adding to pressure on Le Fur, who is stepping down from the CEO position with effect from Dec. 1, after less than two years in the job.
Under Dehecq's reign, Sanofi has grown into the world's third-largest drugmaker by sales and many analysts believe Dehecq wants to make a final deal before he retires at the end of 2009 to propel the company to the top spot, ahead of Pfizer.
For further stories on Viehbacher's new role at Sanofi, please double-click on [ID:nLA78118] and [ID:nLA697581]. (Reporting by Ben Hirschler; editing by Elaine Hardcastle)
