A statement issued yesterday by Serono confirmed that Europe's third-largest biotech is considering a buyout. In recent weeks Serono has discreetly approached potential buyers such as Pfizer, Novartis, GlaxoSmithKline and Sanofi-Aventis. "The list of companies that has been approached has been very selective, with some companies that seem likely to be potential buyers having been left out, particularly a group of candidates in the US," observes The Wall Street Journal.
It's too early to tell at this point whether Serono will be bought out by a pharmaceutical giant or opt for a smaller merger with a firm closer to its own size. However, any deal could face some challenges. Given Serono's size, companies like Sanofi and Pfizer might have to deal with antitrust laws. In addition, Serono doesn't have the most robust pipeline, which is a key consideration for any company looking to acquire the biotech.
- read this article from The Wall Street Journal (sub. req.)