Rumors say Sanofi to merge with B-MS

With the vital patent appeal trial in the USA over drug major Sanofi-Aventis of France and the USA's Bristol-Myers Squibb's blockbuster blood-thinning drug Plavix (clopidogrel), ongoing, speculation was rife about a merger between the two companies.

It started with the French financial newsletter La Lettre de l'Expansion saying that the two had signed a preliminary agreement to merge back in September 2006.

Because of their co-marketing of Plavix, as well as other products, the companies have been seen as merger targets by many observers, although while the Plavix case remains unresolved, B-MS' capitalization value is in flux. It is currently estimated at around $51.5 billion but a loss of Plavix exclusivity, which has already cost the firm dear because Canada's Apotex flooded the market with its generic last year, despite a judgement against it, could see its share price move sharply lower (Marketletters passim).