What will Viehbacher bring to Sanofi?

Does Chris Viehbacher's (photo [1]) advent as CEO of Sanofi-Aventis [2] signal that buyout deals may soon be in the works? Analysts say yes. For instance, the idea of a merger with Bristol-Myers Squibb, often mentioned as a possible target for Sanofi, has again raised its head, this time in an investor note from UBS analyst Gbola Amusa. Such a deal "may be more likely now," the Wall Street Journal quotes Amusa as saying. Bristol-Myers declined comment.

Analysts also expect Viehbacher to cut costs as his colleagues at other Big Pharma firms have done. Sanofi has instituted some layoffs [3]already, but investors appear to be lobbying for the company to shutter some production facilities and cut more jobs. "They have quite a high cost base when you compare them to the pharmaceutical average," one analyst told the WSJ.

Whatever Viehbacher does, his stepping into the CEO role is a sea change for the French firm, which has been run by a cadre of mostly French executives. So some changes are inevitable.

- read the WSJ story [4]

Related Articles:
Analysts predict Sanofi shakeup in 2009 [5]
GSK's Viehbacher picked as Sanofi CEO [2]
GSK exec to head rival drugmaker [6]
GSK loses North American chief [7]