Investors lay new path for Sanofi-Aventis

Oil group Total and cosmetics firm L'Oreal, the two main institutional investors in France's leading and the world's number three pharmaceutical company, Sanofi-Aventis, are shaping a new strategic path for the drugmaker. The two hold around 20% combined and the move follows a deal under which chief executive Gerard Le Fur is to be replaced by GlaxoSmithKline's Chris Viehbacher from December 1 (Marketletter September 15).

Shareholders of the pharmaceutical group have become increasingly concerned about their investment, given that the stock has dropped by around 35% since Dr Le Fur took over as CEO nearly two years ago. News of the planned top management change saw the shares go up 7.2% on September 10.

Three aims have been defined: the adaptation of R&D to better anticipate the demands both of leading pharmaceutical regulatory authorities such as the US Food and Drug Administration and the major purchasers of medicines in national health services.