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Sanofi Fires Viehbacher After Fall out with Board

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Sanofi Fires Viehbacher After Fall out with Board OTC07-11-14p1_OTC15/11/2005 p1&24 05/11/2014 09:07 Page 1 7November 2014 COMPANY NEWS 3 Bayertakes leading spot 3 Sanofi fires Viehbacher in ChinawithDihon deal BoehringersaysnotoOmegabuy 3 GSKhints at Consumer divestments 4 afterfall out with board Merck waves goodbye to 5 Consumer Care business hris Viehbacher,chief executive officer Bayertargets critical mass 6 in Consumer Cof Sanofi, has been firedafter the firm’s board of directors concluded that his “man- Nasacortdrives salesforward 7 at Sanofi agement style was not adequate”. Oriola wantsafairprice 8 In asurprise move,the board of the French for itsRussian operations companyannounced it had “decided unani- BioGaiareports a 9 mously” to remove Viehbacher after six years double-digitsales rise at the helm. Celesioputsfaith in 11 “The group needs to pursue its development new leadership team with amanagement aligning the teams, harness- Pfizer expects Lipitortrialresults 12 ing talent and focusing on execution with aclose in 2015 and confident co-operation with the board,” Sanofistated, adding that its chairman, Serge GENERAL NEWS 13 Weinberg, would takecharge while it search- ed for achief executive. Most Germans have 13 Expanding on the rationale behind the deci- used homoeopathy sion, Weinbergsaid that the board was“strongly Chris Viehbacher has left Sanofi after the board Health Canada approves 16 dissatisfied” with Viehbacher’sability to work Aspirin heart-attack claim criticised his management style with board members to examine the company’s Germans reject OTCguidance 16 strategy “in aconfident manner”. (OTC bulletin,27February 2009, page 1). Australia settooverhaul 17 “The fluidity of the relationship between Acquisitions were central to Viehbacher’s TGAmedicines regulation the chief executive officer and the board was expansion strategy,with the companysnapping MARKETING NEWS 18 inadequate,”herevealed. up Chattem to enter the US OTCmarket in In addition,Viehbacher’sexecution of 2010 (OTC bulletin,20January 2010, page Ricola offerscoldsufferers 18 Sanofi’sstrategy had not been “sufficient”, 1) and adding BMP Sunstone to strengthen its arevitalisingherbal option Weinbergclaimed, noting that the company’s presence in China the same year (OTC bul- OnlineStrepsils campaign 19 fiscal 2013 “had not been very satisfying”. letin,16November 2010, page 1). urgesIndians to speak up Group sales in 2013 had fallen by 5.7% to Under Viehbacher’sleadership, Sanofilifted German companies offer 20 C33.0 billion, he pointed out, with the firm its Consumer Healthcare sales from C1.42 bil- nasal sprays for winter experiencing “significant problems” related to lionin2008 to C3.01 billion in 2013. Omegaintroduces Nasodren 20 its Consumer Healthcarebusiness in China and Weinbergrevealed that discussions among to Spain its Generics business in Brazil. board members overViehbacher’sfuture had Vitabiotics’ commericals 21 Commenting on the problems in China at been ongoing since “the middle of summer”. banned by ASA the time, Sanofisaid the Consumer Healthcare However, the board had not planned on remov- RB launches ‘Junior Notes’app 21 business in the country had been blighted by ing Viehbacher until alater date, he noted. in Austria alack of transparencyinthe distribution chan- “Wehavebeen forced to accelerate the nel (OTC bulletin,21February 2014, page 6). decision because of leaks that came out in the FEATURES 24 The firm admitted that it had no real control press on 26 October,” Weinbergstated. RB plots the future 24 overthe “flowofmargin” between the com- “Wefelt that uncertainty at the head of the of consumer health panyand retailers. firm wasnot good,”heexplained, “so we need- During his six-year tenure, Viehbacher made ed to act rapidly and that is what we have done.” REGULARS Consumer Healthcare one of the company’s Looking ahead, Weinbergsaid that Sanofi’s “growth platforms”. Shortly after he joined the strategy “would remain the same”. “It is busi- Events – Our regularlisting 23 firm, he announced in 2009 that Sanofiintend- ness as usual on all aspects,”headded. People – Rawlinstosucceed Duff 27 ed to double the size of its OTCbusiness to The search for Viehbacher’spermanent re- as chairofUK’sMHRA approximately C3billion within five years ■ Continued on page 27 LI FE VER SA SA VER ME TI Saving time means saving lives. Keep your vital supply chain moving with an array of shipping solutions designed especially for healthcare providers like you. To learn more, go to fedex.com/gb/healthcare or email us at [email protected] FedEx. Solutions powered by people. ©2014 FedEx. All rights reserved. OTC07-11-14p3-12_Layout 1 05/11/2014 09:24 Page 3 COMPANY NEWS OTC Mergers&Acquisitions Mergers&Acquisitions Boehringer says Bayer takesleading spot no to Omega buy in China with Dihon deal oehringer Ingelheim has no interest in ac- Bquiring Omega Pharma, aspokesperson for ayer nowholds aleading position in ingbrands into our growing OTCportfolio,” the German firm has told OTC bulletin. BChina’sOTC market, according to the Brandicourt added, “and to leverage the know- The family-controlled companyhad been company’schief executive officer Marijn Dek- ledge and expertise of our newemployee base linked with amove for Omega,along with San- kers, after completingits CNY3.6 billion (C460 to further growand develop these self-care solu- ofi, store-brand specialist Perrigo and the gener- million) acquisition of privately-owned Dih- tionstothe benefit of consumers across China ics giant Actavis. on Pharmaceutical. and other parts of the world.” Adeal for Omega could be struck before the Announced in March (OTC bulletin, 17 Bayer also believesitcan leverage the herb- end of the year,according to anumber of media March 2014, page 1), the deal givesBayer a als expertise of the German firm Steigerwald reports, with the privately-owned Belgian OTC “portfolio of well-known consumer brands” –which it acquired last year (OTC bulletin, 31 firm expected to fetch around C4billion. and amajor foothold in the country’stradi- May2013, page 1) –and Dihon’sTCM expe- tional Chinese medicines (TCMs) market. rience to bolster its natural-products business. Omega’s sales increase by 40% Dihon’srange of OTCbrands and TCMs Bayer’sConsumer Care operation has a Afocus on increasing organic growth – generated sales of C123 million in 2013, the number of brands in the Chinese OTCmarket, coupled with the companyacquiring abasket of German companynoted, making it a“leading including the analgesic Aspirin, the antifungal GlaxoSmithKline’snon-core brands in Europe player” in China’sOTC market with brands Canesten, the gastrointestinal remedy Talcid (OTC bulletin,16March 2012, page 1) –has such as the Kang Wang dandruff treatment, Pi and the vitamin brand Redoxon. seen Omega’s sales increase by 40% to C1.2 Kang Wang antifungal cream and the TCM In 2008, the companyrelaunched, under billion in the four years ending 31 December brand Dan EFuKang for women’shealth. theBayer name, the White &Black ‘western- 2013 (OTC bulletin,15August 2014, page 4). style’ cough and cold brand it gained by acquir- In the summer,Omega’s chief operating Brands sold outside China ing Chinese firm Topsun (OTC bulletin, 31 officer Christoph Staeuble told OTC bulletin In addition to China, Dihon’sbrands were October 2006, page 3). that the companywas committed to becoming sold in anumber of other markets, Bayer Dekkers pointed out that following Bayer’s the third-largest OTCplayer in Europe with- pointed out, including Cambodia, Myanmar, US$14.2 billion (C11.3 billion) purchase of US- in the next four years. Nigeria and Vietnam. based Merck &Co’sglobal Consumer Care Omega wastaken private by its founder Dr Olivier Brandicourt, chief executive offi- business, the deal for Dihon fitted perfectly with Marc CouckeinFebruary 2012 in adeal which cer of Bayer Healthcare, said Dihon’sman- the company’saim of further growing its Con- valued the company at C870 million (OTC agement team had built a“strong business” with sumer Care business through bolt-on acqui- bulletin,29February 2012, page 11). a“track record of success”. sitions (see page 6). OTC “Weare delighted to bring Dihon’soutstand- OTC 7November 2014 Number 432 Individual subscriptions Te rms &Conditions: These can be viewed in An annual subscription comprises: full at www.OTC-bulletin.com/subscribe. Editor: Matt Stewart ■ 20 OTC bulletin newsletters; No partofthis publication may be copied, Editor-in-Chief: Aidan Fry reproduced, stored in aretrieval system, distributed Production Editor: Jenna Meredith ■ AND at least 45 weekly news@OTCbulletin or transmitted by anymeans, including electronic, Assistant Editors: To mGallen, electronic newsflashes containing the week’s mechanical, photocopying or recording, without Liudmila Kotko, Marie McEvoy top news stories (currentlydelivered by email). the prior written permission of the publisher, or under the terms and conditions of aGlobal Site Contributing Editor: David Wallace Choice of formats Licence or of alicence issued by the Copyright Advertising Controller: Debi Minal The 20 OTC bulletin newsletters are available: Licensing Agency (CLA) in London, UK, or rights Director of Subscriptions:ValDavis ■ EITHER as the digital OTC bulletin-i for bodies in other countries that have reciprocal agreements with the CLA. Group Sales Manager: Anisa Shan online access by desktop,and tablet and Awards Manager: Natalie Cornwell smartphone.Mobile devices can have Apple or Neither maythis publication be exported, Managing Director: Mike Rice distributed or circulated
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