As Sanofi-Aventis announced its Q3 earnings today, analysts are looking ahead to December when ex-GSK exec Chris Viehbacher (photo) will take over as CEO. Many anticipate that Viehbacher will institute major changes to help the company cope with a number of challenges, including patent expirations, the withdraw of Acomplia in Europe, and several failed clinical programs. "Sanofi's stock is one of the cheapest in the drug industry, reflecting investor concern that the company doesn't have enough drugs in development to keep sales growing," notes the WSJ.
The drugmaker has already taken some steps to fill the gaps. Sanofi has boosted its generic drug business with the $2.6 billion buyout of Zentiva, and expanded its R&D presence in China. Like many other developers, Sanofi is increasing its focus on biologics. While the drugs only account for about 10 percent of the company's sales, Sanofi wants to up that number to 20 or 30 percent by 2012.
- see the WSJ report