Sanofi Needs An Innovative Partner

With the announcement that Elf Aquitaine plans to sell its stake inFrench drugmaker Sanofi (see facing page), there has been much speculation on how the company will progress. The overall strategy of Sanofi is to double in size in order to join the world's 10 leading drug companies from its present position at number 23 with total group sales of 23 billion French francs ($4.4 billion), which includes sales in human health care of 18 billion francs.

The main problem is finding the right partner - ideally with capital matching Sanofi's 55 billion francs and with a range of innovative drug products that will complement its own range. However, some sources are suggesting that this general strategy is being met with some hesitation by certain people in Elf, who want to ensure that Sanofi remains a French firm.

Drug analysts in Paris believe in contrast that the ideal partner will be one in the USA. A recent report from Merrill Lynch underlined Sanofi's need to reinforce its presence in the US market, and fellow French company Rhone-Poulenc's reluctance to become involved has sharpened the motivation to look abroad.