Question

Is Genzyme a good strategic fit for Sanofi?

Answer 1

Introduction: Sanofi Genzyme is an American biotechnology company based in cambridge, massachusetts. Genzyme was acquired by Sanofl in 2011. it is fully subsidiary of sanofi. i the 2010 Genayme was third largest biotechnolgy company, having more than 11,000 employees around the world. it was acquired for $20 billions.

Strategic: Genzyme focuses on six areas of medicine relating to lysosomal storage diseases, renal diseases, orthopedics, transplant and immune diseases, oncology and diagnostics. FDA approved first orphan-drug for Genzyme was ceredase (a drug for help in treating gaucher diseases).

- It is normal that when a small company acquired by large pharma, it would take 2 to 3 years down the line and take a different market strategic to cope th siyuation.

-This massive deals shows that large biotech acquire the big pharma.

-Sanofi also changed the internal organization structure and most visible decision is that fire more than 5,000 people in france.

-In 2006 Sanofi has launched a huge makeover in the internal system.

-Business is divided into five unit which shows big change

1.General medicine and emerging market

2. Speciality care

3. Diabeties and cardiovascular

4. Sanofi pasteur for vaccines

5. Merial for animal health

From now, Sanofi's biotech subsidary will be incharge of some of th ekey pipelines such as rare diseases , the result of the acquisition was impressive , the future is also bright as Sanofi ,now has 72% of its pipeline filled with biological.

This strategy no doubt that the acquisition of Genzyme was a real driver for Sanofi.

In the global strategy, Genzyme at the heart of Sanofi's organisation and the Boston unit of the country will stay strong hold in the global strategy.

As per the analysis , it is to be observed that

- Priorities to be given to key growth drivers.

- Accelerate focus on research and development on six potential medicines

- Improve operating efficiences to fund for growth and to expand business with operating income margin.

- Allign to support new strategies with three core businesses and also stand alone with consumer health care unit.