Sanofi Advances Hostile Bid for Aventis with Meds Sale to Glaxo

Strategic Insights -

Sanofi-SynthElabo SA's hostile bid for Aventis SA gained momentum on Tuesday as the French pharmaceutical group agreed to sell two anti-clotting medications to GlaxoSmithKline plc in anticipation of competition regulators' concerns. The sale of Aritxtra and Fraxiparine to London-based Glaxo, the world's second-largest pharmaceutical company, is valued at [Euro]453 million, or $540.7 million. The transaction is contingent upon Sanofi's chief, Jean-Francois Dehecq, winning his [Euro]45 billion campaign to acquire Aventis. Analysts believe the sale is a strategic move to address competition concerns and focus on core activities.

Key Takeaways:

  • Sanofi-SynthElabo SA has agreed to sell Aritxtra and Fraxiparine medications to GlaxoSmithKline plc for [Euro]453 million, or $540.7 million.
  • The sale is contingent upon Sanofi's chief, Jean-Francois Dehecq, winning his [Euro]45 billion campaign to acquire Aventis.
  • Analysts believe the sale is a strategic move to address competition concerns and focus on core activities.
  • GlaxoSmithKline plc will continue clinical trials for Aritxtra if the all-cash purchase goes through.
  • Aritxtra has disappointing sales of [Euro]24 million last year, while Fraxiparine generated revenue of [Euro]319 million.
  • The treatment and Fraxiparine are used to treat blood clots in the circulatory system.
  • Sanofi's hostile bid for Aventis was unveiled in January, which would create the world's No. 3 pharmaceuticals company.
  • Aventis has resisted the bid, labeling it as too low, although French politicians have lauded the creation of a domestic powerhouse.

Statistics:

  • The sale of Aritxtra and Fraxiparine to GlaxoSmithKline plc is valued at [Euro]453 million, or $540.7 million.
  • Aritxtra has disappointing sales of [Euro]24 million last year.
  • Fraxiparine generated revenue of [Euro]319 million last year.
  • Sanofi's hostile bid for Aventis is valued at [Euro]45 billion.
  • Aventis has sold an additional [Euro]8 billion to acquire its own shares.
  • Aventis shares gained as much as 2.6% on Tuesday to [Euro]63.30.

Sources:

  • Byline: Andrew Bulkeley in Berlin, French drugs group Sanofi-SynthElabo SA on Tuesday, April 13.
  • The Deal.com.