Genzyme Case Study Solution

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Index
Introduction 3
1. Context 4
a. The global environment 4
b. Sanofi 5
c. Genzyme 7
d. Expected synergies 7
2. First offer 8
a. The offer 8
b. Reasons of the refuse 8
c. Impact of this first offer 9
3. Agreement and plan of merger 9
a. Tender Offer 9
b. Contingent Value Right (CVR) 10
c. Acquisition financing 10
d. Financial benefits 11
4. Results 12
a. The new group’s organization 12
b. Transfer of business units 12
Conclusion 14
References 15

Introduction

For 15 years, we have assisted at a concentration phenomenon within the pharmaceutical industry. Unless this consolidation, the industry is still fragmented because the main players market share do not exceed 8%. Nevertheless the 10 largest global pharmaceutical groups represent
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Marketing and manufacturing of biopharmaceuticals.
Genzyme is currently organized into two business units: Rare Diseases and Multiple Sclerosis. Since April 2011, Genzyme is part of the Sanofi Group after a takeover battle for its assessment, which reached nearly $20 billion. Genzyme focuses on rare genetic diseases, sclerosis, cardiovascular disease, and endocrinology.
One of the leaders Worldwide biotechnology, Genzyme is dedicated to create a major positive impact on the lives of people with grave diseases.

The acquisition of Genzyme is an important for Sanofi. Indeed, Sanofi missed the turn of biological drugs, which now constitute 60% of the market for new drugs. By buying Genzyme, Sanofi would catch up this market, and could at the same time master the production process which are terribly complex.

d. Expected synergies

Genzyme, which achieved a turnover of 2.3 billion euros in 2010, met contamination problems since 2009 on its Allston production centre. These problems were the cause of the cessation of the vaccines production. Its market share had fallen as fast as its share price. According to M Viehbacher, Sanofi’s expertise in the production of vaccines could be useful in resolving Genzyme

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