thestoryofmeaningfuluse

A Magazine Capturing the Story of Health- For People, Environment, Economy & Habitat

Archive for SanofiAventisStoryCapture

Is Sanofi Aventitis Moving Beyond the Challenges of Pharma?

Is Sanofi Aventis Moving on the Move

As a global health leader will Sanofi Aventis create new sustainable markets of value for health?

By Lavinia Weissman

@WeCareHealth5252525252

New York, New York

Original date of publication on CSRWire Talkback, June 8th, 2011

Greenbiz.com, recently published two important reports by its Chairman and Executive Editor Joel Makower. The first report is an article titled, Green Marketing is Over. Let’s Move On. And the second is a video of Joel’s presentation on the State of Green Business 2011.

After reviewing the report and video, I decided to return to my study of Sanofi Aventis and ask, “Is Sanofi Aventis moving beyond the pharma business model; and will this create new sustainable value markets for health?”

To get at some answers to these questions, I captured a “quick and dirty short list” of Makower’s observations as a framework from which to assess the current state of Sanofi Aventis.

Makower observations:

1. For the most part business is still treading water to build a sustainable economy with out any remarkable progress.

2. While business is treading water, Greenbiz Group doubled its membership, approached by companies they did not know asking to become members. Greenbiz Group now has more than 50 members; Makower sees this as an indicator of hope.

3. Green marketing is in need of makeover. Green marketing initiatives and stories focus primarily on the consumer and what the consumer can buy rather than how companies can create new markets of impact.

4. The key to building new markets is about building new markets for healthy people to live in a healthy world.

Next step: I conducted a quick updated review of Sanofi Aventis to look at their progress over 2010 and what has occurred since the April 2011 completed acquisition of Genzyme. (Links to three previous Talkback posts).

My findings in brief:

With the publication of Sanofi’s 2010 Annual Review, CEO Christopher Viehbacher announced a change to Sanofi’s mission from “to improve the health of as many of the 6.8B people walking the planet as we can”  to focus on a new mission “to becoming a global health leader.”

Viehbacher has outlined three areas of strategy from which to balance its profits with sustainability by focusing attention to resources that:

1.    Increasing innovation as an approach for research and development. September 2010, Sanofi signed a partnership agreement with Dana Farber Cancer Institute’s Belfer Center for clinical trial research. Sanofi has committed an investment in this collaboration of $33M to DFCI over three years. With this investment, Dana Farber gains the right to preclinical, clinical and commercial milestone payment and royalties from sales of commercial products developed by Dana Farber with Sanofi Aventis.

2.    Adapting to future challenges. The company is focused on adapting to the change implied by ongoing translational research and new formats of health education to move beyond the structure of delivering OTC drugs to patients for common ailments and creating new responses to people who suffer from chronic and life threatening illness.

3. Pursuing external growth opportunities. Sanofi has set a goal to explore outside the pharmaceutical framework new forms of treatment platforms that are more affordable and accessible to patients, which opens a broader potential for them beyond the innovation of new drugs.

Sanofi has in recent months introduced a new generation of social media reporting for its Annual Reviews, Sanofi TV and links to Facebook. Within this media constellation, Sanofi offers regular updates on the company, health, professions, responsibility and what is new cross culture, country – and in English and French. Reports update followers from the perspective of all stakeholder interests in CSR, regulation, research, business and advancements for populations of people with specific health needs.

Sanofi through Chris Viehbacher’s leadership has bounded its investment in clinical trials, freeing funds to formulate new platforms of prevention, health education and the development of new, affordable products for the patient that can be easily accessed.

Is Sanofi building a new sustainable market that helps people to be healthy and live in a healthy world? Are they breaking the barrier to the idea that big companies have less success with innovation?

Perhaps Sanofi forging ahead of Novartis, which has accelerated its capability and success with clinical trials or GlaxoSmithKline who is addressing health and poverty in an old format of giving by returning a percentage of profit back to the country in which they do business for a total of $5.4M.

About Lavinia Weissman

Lavinia Weissman (@wecarehealth52525252494949606060) is a sustainable market capacity builder, coach and publisher/editor-in-chief of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ. As a coach, Lavinia works with all her clients to inspire a culture of change that builds healthy practices for people within healthy markets.

Talkback Readers: What do you think? Is Sanofi creating new markets for healthy people who want to live in a healthy world with sustainable value? How would you measure this? Weigh in on Talkback!

WEResearch Note – #pharma – Beyond Business as Usual!

A Research Summary

by Lavinia Weissman

Boston, MA

@wecarehealth52

(graphic: from Vertex Pharmaceuticals collection)

Sanofi Aventis announced the completion of its acquisition of Genzyme, April ll, 2011.  Now is it business  as usual for this progressive global pharmaceutical company?

This raises the question what is “business as usual,” for pharma?  The answer is simple:  “There is no such thing as business as usual for #pharma.”

I began reporting on the changing space of #pharma after the Babson Life Science Conference in 2010, where Matthew Emmens, CEO of Vertex Pharmaceuticals in his keynote described his vision for the future #pharma

” Emmens recognizes that treatment for the majority of ailments, e.g. acid reflux, has and will continue to grow over the counter.   Therefore, the future is about creating a biopharm industry that is responsive to challenging disease that will address the 150 different types of cancer and growing number of systemic ailments. The challenge will be to fund this innovation and research and organize an investment formula that is dedicated to this new emerging market. “

Scott Johnson, CEO and capacity building, Myelin Repair Foundation has proactively since 2004 initiated discovery of an accelerated methodology that leaps beyond what Johnson describes as the Valley of Death. 

Any person diagnosed with a chronic or life threatening illness faces this valley emotionally and physically upon diagnosis.  This person lives in the context of questions:

  •   Will there be a cure for me before  I have to face total disability or impending death?
  •   Can I  sustain the cost of treatment to assure a quality of life out of which I can sustain myself and live?”

Johnson developed with his colleagues, an accelerated research collaboration , the describe as ARC. This model was put to use and built capacity for acceleration by  a group of researchers drawn from 4 academic institutions to combine their agenda in search of a cure.  Johnson with the Myelin Repair Foundation raised matching funds of $40 M and this matched the$40M of combined funding the academic research institutions had.  Drawing from resources from 4 medical schools, the community organized an agenda to leap beyond the “valley of death” where so many patients with MS get lost.

Myelin Repair Foundation in contrast to the FDA

Social innovation expert,  David Bornstein recently compared the results generated by the FDA in 2008 to what has been reported by MRF

In his NYTimes Editorial,  Bornstein reported that  Food and Drug Administration approved 21 drugs for use in 2008, in the same year 800,000 medical research papers were published exploring the cure for disease.  In contrast, the collaboration formed for MS research  by Scott Johnson led to these results:

  1. identification of over 150 novel potential targets;
  2. development of  24 new research tools for broad application to other neurological disease;
  3. filing two US patents and applied for 16 more;
  4. publication of 50 peer review articles;
  5. the launch of  broader collaboration with pharma companies;
  6. extending this research base for benefit to 70 other disease categories.”

Reporting on the pharmaceutical industry is growing complex, especially as more and more companies step their toes into examining the ethic of sustainability and corporate social responsibility.  The complexity ties to growing questions about how to oversee patient involvement in clinical trials for the progression of research, treatment and cure.

When does the patient become a guinea pig and when does the growing differences in approach to clinical trials internationally become an obstacle to the potential cure or treatment of disease? and when is quality of life more important than treatment?

There is a growing recognition of the implications of the quadruple bottom line (4bl) and its implications to health for people, environment, ethic and planet and its implications of how any company approaches any  initiative for health and treatment.

Sanofi Aventis has come to recognize that this context may in fact imply a process of learning and inquiry that implies shifting their corporate strategy beyond the tradition of how pharmaceuticals go about business as usual. In 2009, CEO Chris Veihbacher  announced  Sanofi’s  clear commitment to improve the health of as many of the 6.8B people walking the planet. With the publication of its 2010 report, a value was expressed to deepen this mission by describing itself as a global health care leader.

In coming to this conclusion, Sanofi has asserted an ethic to contain as part of their strategy and development model to appreciate today’s human economic challenges and factoring in societal issues of cost of health care and treatment, chronic illness pandemics, e.g. Diabetes, and access to medical care in its priority from a global view.

Sanofi Aventis continues to be a company to watch and learn from.  It is a company that has adopted transparency, so please do not look to Sanofi for perfection and answers to copy. Sanofi has added to its agenda the difficult question of how to balance profit and sustainability.  It is a systemic approach that moves beyond the traps of green marketing described this week by Joel Makower, “Green Marketing Is Over. Let’s Move On.”

Sanofi Aventis is acknowledge what I first heard described by Matthew Emmens, when he said pharma was moving beyond the marketing of generis to face the reality of responding to the activism and demand from communities of people living with chronic and life threatening illness.

The new health care leader will be paying heed to what the Myelin Repair Foundation response to the valley of death.  Pharma companies will be regroup into consumer goods, wellness products and services, treatment and cure innovation and much more.

Sanofi Aventis,  Novartis and GlaxoSmithKline are all early stage members of the UN Global Compact will continue to be companies to watch that are helping to author a new leadership and market place in support of health. In this context,

I believe we will be reading more about the annual cost of living with a chronic or life threatening illness.

I believe, we will be reading less about what pharmacy offers you or what generic drug is available for the least cost.

In the not to distant future,  I believe we will be reading more about how treatment, procedures, equipment is organized for ease of access and how the expense will be covered by patient and health coverage (insurance, government and assistance programs, and medical savings accounts) and what that implies to the supply chain, consumer product distribution and retail.

_____________

Authors bio:

Lavinia Weissman is an sustainable market leadership coach, journalist, and publisher of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire professional development that assures a person the opportunity to embed sustainability as a leader into the network and culture of people they work with.

Is Sanofi Aventis Moving Beyond the Challenges of Pharma?

Is Sanofi Aventis Moving Beyond the Challenges of Pharma?

As a Global Health Leader will Sanofi Aventis create new sustainable markets of value for health?

By Lavinia Weissman

@wecarehealth54

Greenbiz.com, recently published two important reports by its Chairman and Executive Editor: Joel Makower.   The first report is an article titled, Green Marketing is Over. Let’s Move On . And the second is a video of Joel’s presentation on the State of Green Business 2011.

After reviewing the report and video, I decided to return to my study of Sanofi Aventis and ask, “Is Sanofi Aventis moving beyond the pharma business model;  and will this create new sustainable value markets of health?”

To get at some answers to these questions, I captured a “quick and dirty short list”  of  Makower’s  observations as a framework from which to assess the current state of Sanofi Aventis.

Makower Observations:

1.  For the most part business is still treading water to build a sustainable economy with out any remarkable progress.

2. While business is treading water, Greenbiz.com  doubled its membership, approached by companies they did not know asking to become members.Greenbiz.com now has more than 50 members; Makower sees this as  an indicator of hope.

3. Green marketing is in need of makeover.  Green marketing initiatives and stories focus primarily on the consumer and what the consumer can buy rather than how companies can create new markets of impact.

4. The key to building new markets is about building new markets for healthy people to live in a health world.

Next step:  I conducted a quick updated review of Sanofi Aventis to look quickly at their progress over 2010 and what has occurred since the April, 2011 completed acquisition of Genzyme. (Links to 3 previous TalkBack posts).

My findings in brief:

With the publication of Sanofi’s 2010 Annual Review, CEO ChrisViehbacker announced a change to Sanofi’s  mission from “to improve the health of as many of the 6.8B people walking the planet as we can”  to focus on a new mission “to becoming a global health leader.”

Viehbacher has outlined 3 areas of strategy from which to balance its profits with sustainability by focusing attention to resources that

1.    Increasing innovation as an approach for research and development.  September 2010, Sanofi signed a partnership agreement with Dana Farber Cancer Institute’s Belfer Center for clinical trial research. Sanofi has committed an investment in this collaboration of $33M to DFCI over 3 years.   With this investment, Dana Farber gains the right to preclinical, clinical and commercial milestone payment and royalties from sales of commercial products developed by Dana Farber with Sanofi Aventis.

2.    Adapting to Future Challenge. The company is focused on adapting to the change implied by ongoing translational research and new formats of health education to move beyond the structure of delivering OTC drugs to patients for common ailments and creating new responses to people who suffer from chronic and life threatening illness.

3. Pursuing external growth opportunities. Sanofi has set as a goal to explore outside the pharmaceutical framework new forms of treatment platforms that which are more affordable and accessible to patients, which opens a broader potential for them beyond the innovation of new drugs.

Sanofi has in recent months introduced a new generation of social media reporting for its Annual Reviews, Sanofi Tv and links to Facebook. Within this media constellation,  Sanofi offers regular updates on the company, health, professions and responsibility and what is new cross culture, country and in English and French. Reports  update the reader from the perspective of all stakeholder interests in CSR, Regulation, Research, Business and Advancements for populations of people with specific health needs.

Sanofi through Chris Viehbacher’s leadership has bounded its investment in clinical trials, freeing funds  to formulate a newnew platforms of prevention, health education and  the development of new affordable products for the patient that can be easily accessed to serve a health.

Is Sanofi building a new sustainable market that serves people to be healthy and live in a health world? Are they breaking the barrier to the idea that big companies have less success with  innovation ?

Is Sanofi  forging ahead of Novartis, who has accelerated its capability and  success with clinical trials or GlaxoSmithKline who is addressing health and poverty in an old format of giving by returning a percentage of profit back to the country in which they do business for a total of $5.4M?

Talkback readers what do you think?, Is Sanofi creating new markets for healthy people who want to live in a healthy world for sustainable value? How would you measure this?

Authors bio:

Lavinia Weissman is an sustainable market capacity builder, coach and publisher/editor-in-chief of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire a culture of change that builds healthy practices for people within healthy markets.

What About the Patient?

What about the Patient?

Can sustainability practices bring about better patient care? – Post 3

By Lavinia Weissman

@WeCareHealth52525252

Boston MA

original date of publication in CSRWireTalkback 08 December 2010

The final thought on the potential Sanofi Aventis and Genzyme M&A – and what this could mean for sustainability practices in #biopharm. Click here for Post I and Post II.

The Sanofi Aventis bid of $69 per share for Genzyme expires on December 10, 2010. Genzyme responded to this bid, claiming a share value of perceived $89.

Part of the Genzyme valuation was based on projected sales for Campath, a drug that has just cleared five years of clinical trials with multiple sclerosis (MS) patients.

By November 22, 2010, Genzyme had begun internal discussion about structuring a ”contingent value right” (CVR), based on future benchmarks, as a possible gesture indicating they may accept less than $89 per share. Filing of a CVR insures shareholders can receive benefit from future achieved sales and regulatory targets that exceed expectations at the time of a merger.

Fan of Nassim Nicholas Taleb’s Black Swan could easily mark out an explanation of why nine Wall Street financial analysis of sales projections for Campath were inaccurate. These nine analysis also included predictions by Sanofi’s of $700M and Genzyme’s of $3.5B in annual sales in the range of $350M and $1M offered by other analysts. I perceived one critical loophole in this analysis, which is pivotal to authoring a sustainable merger acquisition strategy:

Has Sanofi or Genzyme consulted with MS patients regarding their needs?

According to the World Health Organization, there are over 2.5M people globally diagnosed with MS. The United States population is the largest country population, now estimated at 1.5M patients. Every hour someone is diagnosed with MS.

MS symptoms occur as result of symptoms to a patient’s myelin sheath. When the myelin sheath is attacked by autoimmune disorders, the patients central nervous system is compromised and the patients nervous system stops communicating clear signals. Autoimmune disorders can be activated by al toxins or genetic defects due to the same. MS patients then find themselves living with pain, muscle spasms, speech impairment, bladder control problems and increased susceptibility to allergens.

The rapid increase in frequency of occurrence of this disease is related in part to increased number of cases and an improved capability in diagnosing the disease, which was first diagnosed 150 years ago. It is not clear how many cases in the past year were undiagnosed. There is no cure for MS; drug treatments focus on treatment of the symptoms and can result in the development of more symptoms or potential harm to circulation, kidney and liver functioning and more.

There is no drug to cure or prevent this illness. It is estimated it would take a $1B+ investment to find a cure. In the past the growth economy claimed it was hard enough for high-mid cap firms to raise those kind of funds without a 60X rate of return. In the emerging eco-growth economy, it is not possible for one biopharm company to raise this kind of investment.

What are patient views of experience with MS and what kind of unmet need now exists for these patients?

Emmy award winner, Montel Williams is one of the most well-known MS patients to date that has articulated the situation and need of his co-patients.

Williams was diagnosed with MS over 10 years ago, when someone threatened to make this information public. In response to this threat, Williams (a talk show host and actor) arranged to be interviewed by Dr. Mehmet Oz on the Oprah Show to make his diagnosis and experience public.

Montel has made known the challenges of depression and suicidal tendencies that patients may experience as a result of learning to come to grips with two major threats:

  • the potential of losing ones ability to be independent and a breadwinner;
  • the fear that you meet every morning that you may wake up and not be able to walk.

Since this first appearance on Oprah, Montel has dedicated a significant amount of time to advocate for MS patients. He also educates patients about new treatments involving alternative medicine and use of medical devices. As a former Naval Intelligence Officer, he advocates and visits with veterans who suffer from MS and other injuries and illnesses that result in the need for myelin repair.

Montel established a foundation to raise money for MS medical research. He recognized as a result of his experience how critical it has become to raise money for more holistic research, which is the only way research will be conducted for prevention and cure.

What is the agenda for myelin repair?

Scott Johnson, an Ernst and Young Awarded Entrepreneur was diagnosed at age 20 with MS. In 2002, using his skills as a Silicon Valley entrepreneur and business person, Scott established the Myelin Repair Foundation (MRF).

By 2004, through Scott’s leadership, MRF established as a goal to license the first myelin repair therapeutic target for commercial development within five years. To achieve this, Scott authored the Accelerated Collaborative Research™ (ARC) methodology. By constructing a collaboration with four principle investigators, MRF and team have:

  1. identified over 150 novel potential targets;
  2. developed 24 new research tools for broad application to other neurological disease;
  3. filed two US patents and applied for 16 more;
  4. published 50 peer review articles;
  5. begun broad collaboration with pharma companies;
  6. extended this research base for benefit to 70 other disease categories.

Has Sanofi Aventis or Genzyme talked to MRF?

When I began investigating the practice of sustainability and its relevance to pharma, I was moved to do so after listening to a speech by Matthew Emmens, CEO of Vertex Pharmaceuticals, about his perceived future for pharma in today’s economy. Emmens has established a mission for Vertex to “seek treatment for a profound change in serious disease.”

The index to the Vertex website draws a pattern of strategy, action and methods on how every stakeholder tied to this company works toward that mission.

It would appear if the basis for acceptance of any Sanofi Aventis bid for Genzyme depends on an understanding of the what the implications of the drug Campath to the MS market, that it is incumbent on both companies to form a working group and open the conversation to a much wider group of stakeholders. This form of stakeholder engagement may represent a new format because of the complexity of issues entailed in creating profound change in serious disease.

The stakeholder map and landscape is far more complex than an industry-based view of supply chain, consumers and distributors in a product-based market. The stakeholders include patients, medical research think tanks, drug companies, clinicians who treat patient of all kinds, insurance companies, benefit administrators, human resource employees, disability experts and more.

This certainly could result in authoring a collaborative, intelligent and quality sustainability business practice for pharma.

Readers: What do you think – can this potential merger lead to greater sustainability in the biopharm industry, and help patients?

_____________

Authors bio:

Lavinia Weissman is an sustainable market leadership coach, journalist, and publisher of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire professional development that assures a person the opportunity to embed sustainability as a leader into the network and culture of people they work with.

Factoring Sustainability in an M&A Scenario

Regarding Sanofi-Aventis and Genzyme: how do you construct a sustainable valuation of pharma? – Post 2

By Lavinia Weissman

@WeCareHealth52525252

Boston MA

original date of publication in CSRWireTalkback 08 December 2010

The Sanofi-Aventis and Genzyme merger and acquisition dance continues. As I continue to monitor the press, I built out my own research to find an answer to this question, “How do you factor sustainability into a biopharm merger and acquisition?”

On October 7, following my last post on the Sanofi and Genzyme merger dance, Genzyme’s board unanimously declined the SA bid of $69 per share, asserting that Genzyme was worth $89 per share. Sanofi views their offer as realistic and Genzyme views their valuation as what “the company is worth.”

How is #pharma stock valued?

Of the numerous articles cited on Twitter, I found an analysis by Jim Edwards. Edwards, a former Knight-Bagehot fellow at Columbia University’s business and journalism school and drug marketing journalist for BrandWeek, provided a news analysis questioning the validity of both valuations and the basis for the predicted EPS (earnings per share).

Edwards’s analysis assumed both companies are dancing around inaccurate information. Edwards, who is versed in #pharma investment valuation, identified a similar scenario that resulted in Goldman Sachs creating errors in the calculations related to the Roche acquisition of Genetech.

Is Investment Analysis Sustainable?

Last week, Genzyme’s auditor, Deloitte, released two articles on its website regarding the implications of sustainability in M&A scenarios and how sustainability relates to business today.

Deloitte pointed out sustainability is not about the usual due diligence performed during M&A. This assessment is based on the recognition that sustainability as an agenda has expanded beyond the focus of environmental issues.

Today’s sustainability agenda factors in regulation, finance, reputation and any “social impacts” from the point of view of all stakeholders. This goes beyond the assumptions used to calculate projected shareholder value.

What do we know currently?

Genzyme is hedging its bets, based primarily on a report that describes their improvements, further cost reductions and a plan to market the drug Campath (alemtuzumab) for multiple sclerosis.

Campath is already sold for the treatment of chronic lympocytic leukemia (CCL) cancer. With the completion of five years of clinical trials testing this drug as a replacement for Interferon, Genzyme is projecting a presales market for MS by 2011 that will bring $3.5 billion in annual sales as a basis for an EPS of $4.30 to $4.60. SA is projecting a peak of $700 million in annual sales.

There are seven other Wall Street analysts providing data on Campath peak annual sales ranging between $370 million – $1 billion.

Is there a #pharma business model that will project accurate sales projections?

Vertex Pharmaceuticals CEO, Matthew Emmens, perceives a future for biopharm that will focus on innovation, research and development of drugs that treat and sustain the chronically ill.

Emmens views treatment for the majority of ailments, e.g. acid reflux, has and will continue to grow over the counter. Hence, the future is about creating a biopharm industry that is responsive to challenging disease by addressing the 150 different types of cancer and growing number of systemic ailments.

Historically the challenge to this direction has been the excessive cost of innovation and research to discover these drugs for the treatment of complicated diseases. Is there a new method of innovation and research that can lessen the cost and reduce the amount of investment, or are there other options?

How do you construct a sustainable valuation of #pharma?

Given the range from $370 million – $1 billion by seven Wall Street analysts and the gap between Sanofi’s projection of $700 million with Genzyme’s $3.5 billion, how do you ascertain a business value based on sustainable assumptions?

Perhaps Sanofi has this question in mind: Sanofi asked Genzyme to convene a team to produce the analysis on the value of Campath.

Next in this series: How do you predict #pharma consumption patterns for presales, when the consumer is a patient? What variables have to be considered when the consumer is a patient and the sale is not an over-the-counter sale? Stay tuned!

_____________

Authors bio:

Lavinia Weissman is an sustainable market leadership coach, journalist, and publisher of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire professional development that assures a person the opportunity to embed sustainability as a leader into the network and culture of people they work with.

Sanofi-Aventis & Genzyme Conspiracy


Note from the Publisher:

The development plan for thestoryofmeaningfuluse.com is to archive meaningful story capture in a format that assures the a daily story can be archived with other related stories. We are building a program to provide our readers a long view of our story capture for educational purposes as we observe the stories to weave into an activity of sustainable impact.

This week we will be featuring a series of stories related to Sanofi-Aventis’s acquisition of Genzyme drawn from a 3 post series, originally published in

CSRwire Talkback | join the conversation –CSRwire is the leading source of corporate social responsibility and sustainability press releases, reports and information. 

Sanofi Aventis was an early adapter and contributor to the UN Global Compact Community.  Lavinia Weissman selected to follow this story of Sanofi’s acquisition of Genzyme as a way to report on the story of how Sanofi Aventis will embed responsible a framework of sustainability into the Genzyme culture and its performance, moving forward.

Let the story begin……………………………………………………………………………………..

Hostile Take Over or Sound, Sustainable Business Strategy?  – Post 1 of a 3 Part Series.

Search on Category: SanofiAventisStoryCapture to find all related articles.

By Lavinia Weissman

@WeCareHealth

Boston MA

original date of publication in CSRWireTalkback  07 October 2010

The Boston Globe published an article on Monday, October 4, 2010, titled “Sanofi-Aventis launches take over battle with Genzyme.”

On July 29, 2010, Sanofi-Aventis offered a fair price bid price for the purchase of Genzyme. On August 30, Genzyme confirmed it received an unsolicited bid of $69.00 per share. The bid was turned down by Genzyme’s CEO Henri Temeer.

Mergers among the Fortune 500 are increasing; for example, Pfizer acquired Wyeth and Merck acquired Schering-Plough. Acquisitions and mergers usually involve some form of workforce reduction, management of corruption and, of course, higher profits. Is there something different about Sanofi’s bid for Genzyme?

CEO Christopher A. Viehbacher came to Sanofi from GlaxoSmithKline in December 2008. His priority was to respond to declining profits occurring with the patent expirations of key drugs in 2013.

Viehbacher chose to accelerate CSR as a core strategy with a mission to improve the health of the world’s 6.8 billion citizens. Sanofi-Aventis’ 2009 Sustainability Report outlines an overview of programs in research and development that have a patient-centric focus.

Sanofi is now an emerging leader in global markets in Latin America, Africa, Russia, India, China and South Korea. Annual global sales total 29.3B (euros), making Sanofi the 3rd largest pharmaceutical company. Sanofi-Aventis has strengthened operations and organized itself to take innovation and research to market, drawing on its active participation in the UN Global Compact since its establishment in 2000.

While Genzyme is innovative in regards to research and development for cancer and other illnesses, it has proven to be weak in sustainability. A viral outbreak, a plant shutdown, low inventories and a $175M FDA fine disrupted Genzyme’s operations and reduced its share value to as low as $45. Bid rumors added value to a shaky year for Genzyme and increased its value per share to $71.

This invites the question:

Is Sanofi-Aventis’ bid for Genzyme simply another hostile take over or a bid for a sustainable core business strategy?

As of 20 March 2011 -The merger is still in process and moving forward in a positive way, what do you think now? What have you learned?  Post 2 will be posted Monday, April 4, 2011. Stay tuned.

_____________

Authors bio:

Lavinia Weissman is an sustainable market leadership coach, journalist, and publisher of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire professional development that assures a person the opportunity to embed sustainability as a leader into the network and culture of people they work with.

Follow

Get every new post delivered to your Inbox.

Join 51 other followers