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
TheStreet Open House

Why Sanofi Won't Buy Big Biotechs

BOSTON ( TheStreet) -- Sanofi-Aventis (SNY) 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)? 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)? 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)? 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)? Too big.

To me, that leaves Allergan (AGN). 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 TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs