Chris Hughes, Columnist

Sanofi Throws Caution to the Wind

By paying in cash, CEO Olivier Brandicourt is leaving little margin for error.

January 29, 2018 at 11:41 AM UTC

Chris Hughes is a Bloomberg Opinion columnist covering deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

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Paying a monster price is one way to secure a deal. Sanofi has applied this crude method twice in eight days. The French drugmaker's reputation as a risk-averse acquirer needs revisiting.

Monday's agreement to pay 3.9 billion euros ($4.8 billion) in cash for Ablynx NV adds another biotech specializing in rare blood disorders, following last week's $11.6 billion all-cash takeover of U.S. hemophilia group Bioverativ Inc. Sanofi trounced a measly 2.6 billion-euro proposal from Novo Nordisk A/S, part of which was contingent on progress in clinical trials.