From FT.com via the PharmaGossip blog, one reason that Sanofi is on a purported spending spree is that it has too much cash on hand. It generated $10.7 B from operations in 2010 and now analysts and investors want the company to do something with it.
CEO Chris Viehbacher is under pressure to spend, spend, spend. We should all have such troubles. Would he rather be on the edge of a big patent cliff with a gaping hole in his pipeline and have ZERO to spend to get out?
At least he has money levers to pull, and seems to be diversifying the portfolio through acquisition of small and leaner companies - thus not adding a mega-merger bloat to contend with.
Recent rumors have Sanofi chasing either Allergan, BiogenIdec, Genzyme, Celgene or Gilead -- and at least one analyst has mentioned Amgen too.
As I said, it is good to have the cash on hand and to at least have spending options.
Posted by Bruce Lehr July 4th 2010.