Sanofi, Genzyme execs hint at cost-cutting focus

Executives at Sanofi-Aventis and Genzyme are disclosing plans for operating after their merger closes later this year. And those plans are pretty much in line with what analysts and other observers expected: Administrative functions are likely to see cuts, while R&D and manufacturing could grow.

As the Boston Herald reports, Genzyme CEO Henri Termeer expects job cuts in administrative areas. Some Genzyme positions "related to the administration of a public company [are] probably not necessary" after the merger, he said. "You don't need to duplicate that work."

Sanofi's president of global operations, Hanspeter Spek, echoed those comments at the Citi Global Healthcare Conference, the Associated Press reports, saying that cuts would be focused on parts of Genzyme that overlap with Sanofi operations.

Meanwhile, Termeer expects manufacturing and R&D employment to actually grow at Genzyme. "I think that's impacted [positively]," he told the Herald. "That's where [Sanofi's] increased investments become interesting." That should be good news to the folks at Genzyme--and good news to anyone who's worried that the merger might run off Genzyme's top talent.

- read the Herald piece
- get more from the AP

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