"Major Manoeuvres" For French Drug Companies

18 December 1995

France's pharmaceutical industry has faced two basic international realities in the last two years - the increasing pressure of governmental cost-cutting reforms and intensified competition. The result has been a speeding up of what the French call "major manoeuvers" - notably no fewer than 20 acquisitions in a 24-month period, which have had an unsettling impact on the still rather cosy world of the country's smaller drugmakers.

The leading French groups, in contrast, have reacted competitively, with Sanofi adopting a new company strategy giving priority to health care products, and the newly-created Franco-American grouping Rhone-Poulenc Rorer launching an assault on UK company Fisons (Marketletters passim) to achieve a leading world market position in the asthma and allergy treatment sectors. R-PR is also set on expansion in the generics sector with the purchase initially of Biogalenique.

The generics sector is seen as vital in light of Prime Minister Alain Juppe's high-risk strategy of reducing significantly the social security and health care budget deficits. The generics sector is still a symbolic market in France at present, accounting for just 3% compared with 30% in Germany and 45% in the USA.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK



Companies featured in this story

More ones to watch >


Today's issue

Company Spotlight