Embracing diversity tailormade industrial

The world collapses, at least that of the finance, but no matter. As long as it is health! Seen elsewhere on the stock exchange, where the pharmacy sector is finally better than the average in the General cataclysm. As already said Volpone in the 17th century: "O health." Health! Blessing of the rich! Wealth of the poor! Can acquire you at too high a price, since there is no joy in this world without you. "Crisis or not, health remains a solid business.

Very strong, since he is still able to display two-digit growth and margins exceeding 30. This does not prevent this hushed and exclusive environment to know him also his bouts of fever. The Palace revolution which has shaken last week the corridors of the giant Sanofi is one of size. A year and a half after his appointment, the Director-General Gérard Le Fur was landed under pressure from shareholders to have too quick to take the measure of the current upheaval. In the new arriving therefore to apply another strategy that will turn on the "opening" keyword: partners, new products, to new countries. As in the automobile or agri-food. Time of excessive specialization, the monoproduit of mass, is now gone. Embracing diversity, tailor-made industrial.

Because it is the entire sector of the pharmacy is changing phase and thus of strategic model. Phase I, as we say for testing of drugs, was the cozy comfort of national strongholds, small happy Labs in their campaign. A crumb and sympathetic, landscape of the beginnings of any industry. This period is completed there is 20 years with the establishment of multinational only able to follow the real arms race, made necessary by the dramatic increase in research costs (the cost of drug development reached the billion euros) and marketing (more than 20 of turnover). Followed a wave of unprecedented mergers, including one between Sanofi and Aventis in 2004, resulting in the concentration of the sector in the hands of a decade of global players.

The absolute symbol of this time was Viagra, launched in 1998. This little blue pill that restores vigor to the tired virilités will also boost its owner, the American Pfizer, become the world leader in the sector. And the general public to become familiar with the term "blockbuster", inspired by Hollywood. These drugs stars whose annual turnover exceeds $ 1 billion. We then target diseases of mass long or metabolic, cardiovascular disease or diabetes. Of very expensive drugs reimbursed by social security and that the patient must sometimes take his life. The top three products of Sanofi, active against thrombosis (closure of the veins or arteries) or diabetes, are each more than EUR 2 billion per year in sales and account for only 25 of the total sales of the group. The two figures of this era are, on the one hand, the researcher who found the Nugget, the other the tireless medical visitor, which is the seat of the practitioners. It's not surprising that Gérard Le Fur passed the management research of the company.

It is this period, which was only transitional, which ends today. Because two events will undermine the strategy of the blockbuster, both from America. In 2004, laboratory Merck withdrew hastily market its anti-inflammatory Vioxx after publication of studies of risk of cardiovascular accidents for patients. This case has traumatized the country and put considerable pressure on the body of guardianship, the Food and Drug Administration. At the time, it accused of laxity, has considerably hardened its procedure of authorisation of the medicines. Sanofi made charges, when he was refused last year to market its anti-obesity, Acomplia, purported pill be the new drug of the firm.

Second movement, face the inflation on social security spending, the Government released the rules on industrial property. They have authorized generic drug manufacturers to attack the patent even before they fall into the public domain. Thus, since five years, Plavix, global success, is attacked everywhere by generics while the patent falls and 2011. Armies of lawyers criss-crossing the world and picked the documentation in the hope of finding fault will help bring down a star. Because, as soon as a generic appears, the market share of the leader collapsed almost instantly, at least in the United States, which represent half of the world market. These two new elements, the regulators caution and activism of the generics, have created a climate of considerable uncertainty surrounding major laboratories. Because many drugs will fall into the public between 2009 and 2013, that Morgan Stanley analysts in a large study on the question (1) call "the cliff 2013." The falls can be spectacular. The cholesterol-lowering Lipitor from Pfizer brings him 12 billion dollars per year, or one-quarter of its turnover. It is the best-selling drug in the world. The arrival of generics as soon as 2011 a coup could demote the American laboratory of its position as world number one, below the top five global! And as drugs following much more difficult to pass administrative ramp, the relay is not assured. It is the problem of Sanofi, which relied on the Acomplia to succeed, in terms of sales, Plavix and other Lovenox.

What to do Morgan Stanley specialists suggest three runways. First, diversify into less cyclical activities (Diagnostics, ophthalmology, functional foods, animal health, drugs without a prescription...) or more difficult to copy such as vaccines or biotechnology, and measure drugs. Second, greatly reduce commercial costs and recourse to subcontracting, including research. Finally, put the cap on emerging countries, which are the only ones today to continue to grow. A route followed by the Swiss Novartis and especially rock, the star of the sector through its presence in the biotechnology (Genentech) and diagnosis. All these measures have already engaged in Sanofi, which gave a blow of Accelerator this year by multiplying the acquisitions in vaccines, the countries of Eastern or functional foods. Too little too late. Shareholders, eager to enhance their participation to get out, have found that it was time to turn the page.