This morning we learned that Google and our chardonnay guzzling friends have hooked up on another project. This time it’s on the drug side. According to a Sanofi statement;
“Google will apply technology and analytics on Sanofi’s large real world database to better understand what treatments work for patients”
Now this is not the first time these two have hooked up as Verily, Google’s Life Sciences unit is also partnered with Sanofi in the much-hyped diabetes partnership OnDuo.
The fact big tech and big pharma are hooking up is hardly shocking as to us this just an extension of the many big tech device hook ups. IBM Watson is hooked up with Medtronic and Verily besides working with Sanofi is also working Dexcom. Yes everyone believes that big data combined with analytics will yield not just smarter devices but better drugs too.
Given all these hook ups why not go one step further and have Google buy Sanofi outright. Or why not buy Dexcom and Medtronic and rule the insulin pump world. It’s not like Google is short of cash or isn’t making money from their core search business. This may sound completely off the wall and no we did not start our morning with a few mimosa’s (wish we did).
Let’s get real here folks as it’s not like Serge has done that great of job with Sanofi. Compared to its peers Sanofi’s performance has been subpar and we are being overly kind with that statement. Take a look
Lilly Novo Nordisk AstraZeneca Sanofi
1 Year +31.85% 16.42% 12.41% 9.40%
2 Year 35.69% 17.24% 15.71% -12.50%
5 Year 79.84% 13.96% 9.50% -18.68%
The fact is Sanofi stakeholders would be thrilled if Google came along with an offer. Of course this is the same group of stakeholders who have been sitting around sipping chardonnay while the Board and management run this company into the ground. This must be a French thing for if this was going on with an American company, they wouldn’t bring a gun to a knife fight they’d bring a nuclear weapon.
Frankly this level of ineptitude is astonishing.
Even worse for Sanofi stakeholders without a takeover this stupidity is likely to continue. Even if the new CEO sells the diabetes franchise to AstraZeneca that would only provide the company with more money they can waste in another area. Sanofi needs a total makeover a complete overhaul and let’s be honest the French don’t have the stomach for what truly needs to be done.
So have it Google, spend some of that cash and have some fun. As Momma Kliff used to say not sure they would do any better but my goodness they couldn’t possibly do worse.