Leadership Case Study

Sanofi-Aventis: CEO Gerard Le Fur's Formula for Change

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Abstract:
Sanofi-Aventis, the world’s third biggest pharmaceutical company, focuses mainly on prescription drugs and human vaccines. Ever since the company’s establishment in 1973, the company had been following the inorganic growth strategy to mark its presence worldwide. Until recently, Sanofi remained reserved and never disclosed the details of the group’s portfolio of experimental drugs, thereby raising shareholders’ concerns. In addition, the company is uptight with growing competition from generic drug-makers. In January 2007, Sanofi had a major management reshuffle wherein, the company’s longest serving chairman and CEO Jean-Francois Dehecq, relinquished his CEO position to Gerard Le Fur while retaining chairmanship. Amid this situation, it remains to be seen whether Le Fur can sail the company through these troubled times.

Pedagogical Objectives:

The case is structured to help the students understand:
• Critical success factors in the pharmaceutical industry
• Value chain of the pharma industry
• Trends and challenges facing global pharmaceutical industry
• Sanofi-Aventis’ new CEO Gerard Le Fur’s initiatives
• Promoting a company insider vs appointing an outsider.

Keywords : Global Pharmaceutical Industry; Critical Success Factors; Value Chain of the Pharma industry, Acquisitions and Joint Ventures, Trends and Challenges in the Pharma Industry; Product Lifecycle Management; Jean-François Dehecq; Organisational Transformational Strategies; Restructuring - Turnaround Strategies Case Study; Leading Transformation; Pfizer; Glaxosmithline; Novartis; Clinical Research Outsourcing (CRO); Blockbuster Drugs; Successor’s Dilemma; Generic Drugmakers; FDA Regulations

Contents:

• Global Pharmaceutical Industry – A Landscape
• Growth of Sanofi-Aventis under Jean-François Dehecq
• New CEO Gerard Le Fur's Initiatives