bioMerieux's and Pierre Fabre's Surprise
Alain Merieux and Pierre Fabre surprised the world by announcing the merger of the two companies they founded, bioMerieux, the world's eighth largest diagnostics company, and Pierre Fabre, the second largest pharmaceutical house in France. The stated purpose of the proposed merger is to allow both companies, which will have combined sales of $1.6 billion, to better compete in consolidating industries than either could on its own. They will focus on four therapeutic areas, with a goal of linking diagnostics to therapeutics. The companies are unlikely partners from a strategic point of view: bioMerieux makes in vitro diagnostics instruments and reagents, while Pierre Fabre is a mid-sized pharma company.
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