France's Sanofi-Aventis said to be in talks to acquire troubled US biotech Genzyme

Speculation abounded since mid-day (US time) last Friday that French drug major Sanofi-Aventis has made approaches to acquire US biotechnology firm Genzyme, which has suffered in recent times due to problems at its manufacturing facilities, leading to severe shortages of its two top selling drugs - Cerezyme (imiglucerase for injection for Gaucher's disease) and Fabrazyme (agalsidase beta, for Fabry disease) - and consequent sales/earnings slumps, as well as a sharp drop in its share price.

Rumors started earlier this month, when Sanofi-Aventis was said to be eyeing up a US bid in the $20 billion range, the company having previously made clear that it was not after a mega-merger.

However, the 'news' got stronger after the Wall Street Journal, quoting sources familiar with the matter, reported that the French company and Genzyme 'have begun sounding out each other's interest in a deal before entering into formal talks.' However, a completed transaction is far away, these sources cautioned, although intimating that the offer price for the US firm was under $20 billion. Genzyme's market capitalization the previous day stood at around $14.5 billion.