Economics 1021A/B Study Guide - Quiz Guide: Pharmaceutical Industry, Composite Index Of National Capability, French Ministry For The Economy And Finance

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

The socio-political economy of pharmaceutical mergers: a case study of sanofi and aventis. The merger between the french pharmaceutical company sanofi-synthelabo and aventis in 2004 entails the emergence of one of the most important actor of the sector. This operation illustrates the strong opposition between national state interests and what is at stake in a globalized economy. The french government championed the deal without taking into account relevant economic variables to preserve national capabilities in pharmaceutical research and development, jobs and french industry. Actually merger and acquisition activities are the result of rational strategies and strong environment research about culture and socio-political outstanding. The purpose is to be able to reshape the industry through the lens of long term strategy and to reveal high combination potentials. Two problems were at the heart of this merger: both companies were fighting dispute and legal actions and accepting this merger will be seen as a concession of weak legal cases.