History and development of Sanofi-Synthélabo

Résumé du document

This document presents the history and development the fusion between Sanofi and Aventis. Sanofi-Synthélabo resulted from the merger in 1999, of Sanofi and Synthélabo, two French pharmaceutical companies. After the merger, both companies combined their resources to spread the presence of Sanofi-Synthélabo to the world, particularly to the United States, and to concentrate its efforts on the research and development of new products with great potential. Sanofi was founded in 1973 by Elf Aquitaine, a French oil company. Sanofi launched its first major product in the market, Ticlid, in 1978.  Synthélabo was founded in 1970 by the merger of two French pharmaceutical companies, Dausse Laboratories and Robert and Carrière Laboratories. In 1973, L'Oréal acquired the majority of the capital. In 1988, Synthélabo launched two major products in the French market, Stilnox and Xatral. At the time of the merger, Synthélabo was the third pharmaceutical group in France in terms of turnover. The merger of Sanofi and Synthélabo, decided at the end of 1998, was realized on May 18th, 1999. After the merger, Total Fina Elf and L'Oréal became the two main shareholders of the new group, although none of them hold the majority of the share capital. Further to the merger, Sanofi-Synthélabo decided to concentrate on its main activity, pharmacy.

Extraits

[...] - Central nervous system, with Stilnox, world leader in the treatment of the insomnia, and Depakine, the reference treatment of the epilepsy. - Inner medicine, with Xatral for the treatment of the prostate mild hypertrophy. - Oncology, with Eloxatine, an anticancer patient at present marketed in Europe, used as first-line treatment of the colorectal cancer. The three flagship products of Sanofi-Synthélabo, Plavix, Aprovel, and Stilnox, represent, in of the pharmaceutical turnover, that is million euro. Sanofi-Synthélabo is strongly engaged in research and development. [...]

[...] In its 14 research centers, Sanofi-Synthélabo employs more than persons. Aventis Aventis is a European pharmaceutical group which arose in 1999 from the merger of a German company: Hoechst, and a French company: Rhône- Poulenc. Indeed, The German pharmaceutical and chemical group Hoechst and the French pharmaceutical group Rhône-Poulenc initiated on December 1st a merger which resulted 3 years later in the creation of the second world pharmaceutical group, under the name of "Aventis". Both groups created at first a common company named "Aventis", with a head office in Strasbourg, and which aggregated their activities of "Life sciences": the pharmacy and the animal and vegetable health. [...]

[...] Consequences First point: Sanofi-Aventis published in 2005 its results under the second quarter 2005. The sales turnover is brought out to 6,687 billion euros, in rise of 6,5%. The adjusted net income of the group amounts to billion in progression of 26%. So after this, we can say that: this performance permitted the group to anticipate, except major unfavorable events, a growth of the net income per share 2005 from at least against a preceding objective of rise “equivalent to that recorded in 2004 " (either a little less than 20%). [...]

[...] What would undoubtedly have caused dispersion in various parts of the world. Thus, thanks to this merger, the decision-making centers could be kept on the own territory, as well as research and employments, which result from it. Third point: With regard to employment, in a total way fusion did not really upset the organizational economic situation of both companies while taking account of the usual changes which such fusions can cause. Conclusion: Explanation about the margin end views reaction between the 2 companies Suggested bibliography Sanofi-Aventis: Pharmaceutical Industry, Sanofi-Synthélabo, Sanofi Pasteur, Synthélabo, Aventis - Paperback (Feb 2010) by Lambert M. [...]

[...] (American Depositary Shares) To end this merger, the demand was presented to the European Commission. The merger conditions were established on the basis of both companies' accounts, stopped on December 31st The treaty was signed on April 14th and the merger came into effect, from a legal point of view on December 31st However, the project was totally approved under certain conditions intended to protect the competition and thus the interests of the European consumers on a certain number of markets. [...]