This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Sanofi Won't Buy Big Biotechs

BOSTON ( TheStreet) -- Sanofi-Aventis (SNY - Get Report) might be in the market for a $20 billion-plus acquisition, or so says Bloomberg this morning, but is the French drug maker really targeting a large-cap biotech?

I can think of some reasons to doubt it.

Biogen Idec (BIIB - Get Report)? Sure, Carl Icahn has wanted to sell the company for years, but Biogen just named a new CEO this week. Would that have happened if the company was for sale? Plus, if Sanofi wants a drug pipeline, Biogen isn't the ideal candidate since one of the company's weaknesses is its anemic, internal drug research efforts. That's one of the reasons why George Scangos, a scientist, was recruited to be the new Biogen chief executive.

Genzyme (GENZ)? Does Sanofi really want to buy an FDA manufacturing consent decree? That's what you get with Genzyme, which can't seem to keep its drug manufacturing plants running without something breaking down. Yes, Genzyme has taken concrete steps towards fixing its manufacturing woes, but Sanofi would have take a big leap of faith before making an acquisition like this. I don't see a deal here happening.

Gilead Sciences (GILD - Get Report)? If Sanofi truly wants to buy a "biotech" firm, meaning a company with the capacity and know-how to develop and manufacture biologic drugs, Gilead is not the fit since it deals exclusively in the small-molecule arena.

Celgene (CELG - Get Report)? Perhaps if Sanofi wants to reclaim its once-dominant position in the cancer drug market, but then Celgenge just acquired Abraxis BioSciences (ABII) this week. Doesn't that signal that Celgene is decidedly not in play?

Amgen (AMGN - Get Report)? Too big.

To me, that leaves Allergan (AGN - Get Report). Not a biotech, but it does provide nice diversification for Sanofi.

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.
Adam Feuerstein writes regularly for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AGN $267.33 -2.40%
AMGN $143.22 -1.30%
BIIB $250.32 -5.10%
CELG $98.92 1.10%
GILD $85.48 0.40%


Chart of I:DJI
DOW 15,945.48 -81.57 -0.51%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs