Sanofi Aventis

Sanofi launches $1.92B Zentiva offer

Tracy Staton — Fri, 11 Jul 2008 09:44:31 -0400

Make way for Sanofi-Aventis. The French pharma has officially launched a $1.92 billion counterbid for Zentiva, the Czech generics maker. It's a 14.6 percent premium over Zentiva's closing price the day before PPF Group announced its buyout bid--and 1,050 crowns per share compared with PPF's bid of 950 crowns. At Sanofi's price, the value of Zentiva would be $2.69 billion.

Zentiva officials now say they'll comment on the offer, which they had avoided doing since Sanofi announced its plans to make a bid last month. Zentiva wasn't so shy when it came to PPF's lower offer; the Czech company flat out told shareholders that PPF's bid was too low.

You'll recall that Sanofi bought a 24.9 percent stake in Zentiva back in 2006 for $518 million. The new bid is for the remaining 75.1 percent--but PPF owns 19.2 percent in partnership with an Italian insurer. If Sanofi can assemble a patchwork of other major shareholders--including management and employees at 5.9 percent--it could reach a 48.5 percent share--and then would only have to get a few minority shareholders on board. The offer is contingent on Sanofi amassing more than 50 percent of the company.

- here's Zentiva's statement
|- read the CNN Money story

Setback for Lilly, gain for Plavix?

Tracy Staton — Tue, 24 Jun 2008 09:16:20 -0400

When FDA delayed its decision on Eli Lilly's clot-buster prasugrel, a.k.a. Effient, it sliced at least three months off the time Lilly might have to win market share from the commonly used blood thinner Plavix. Doing so quickly is crucial, because Bristol-Myers Squibb and Sanofi-Aventis' Plavix goes off patent by 2011--and cheap generic versions are likely to drain away even more of the market. Report

Sanofi confirms sales rep layoffs

Tracy Staton — Mon, 09 Jun 2008 11:39:52 -0400

It's been rumored for weeks, and now Sanofi-Aventis is confirming. Yes, the French drugmaker will cut jobs at home in France. Details are sketchy, but here's what we know: Sanofi will lay off 700 to 800 sales reps. That's about one-third of the company's domestic sales force. And the cuts will go deeper than expected; union officials had been bracing themselves for 400 to 600 job losses.

Of course, Sanofi is far from alone in cutting back its sales force this spring. Last month, Merck said it's cutting 1,200 sales reps, and in April, Johnson & Johnson announced 400 cuts in sales and marketing. In March, it was Wyeth saying it would slice 1,200 off the sales payroll.

- see the brief for more