The purpose of this case is to bring the reader to understand the complexity of megamergers and acquisitions, in the backdrop of the French context. Some of the issues raised in the case are: (1) do pharmaceutical companies need to globalise to survive? (industry analysis and globalisation), (2) are mergers and acquisitions a better way forward than internal organic growth? (global logic of megamergers, hostile bid and defense strategy), (3) are alliances necessary as the costs of bringing new drugs to market continue to increase? (strategies for synergy with respect to product portfolio, product pipelines, international presence), and (4) European Union and the French State (creation of ‘National Champions’). The case provides a stimulating environment for discussion on these topics related to strategy and international management in the pharmaceutical industry.
SOM, A. (2004). Sanofi Synthelabo-Aventis (A): the French connection of mega mergers. ESSEC Business School.