Genzyme seen more attractive to Sanofi than Glaxo

Sanofi-Aventis is far more likely to buy Genzyme than GlaxoSmithKline, which already has a presence in rare diseases via a deal with Japan's JCR Pharmaceuticals, industry experts said on Monday. Sources familiar with the matter said on Friday that Sanofi was sounding out Genzyme as the French drugmaker hunts for a large acquisition, prompting a 15 per cent jump in the US biotech company's market value to $16.7bn. The Wall Street Journal said Britain's Glaxo had also recently made "a very casual approach", but industry insiders and analysts said Glaxo Chief Executive Andrew Witty, with a reputation for caution on M&A, was unlikely to chase the asset. One of Genzyme's main appeals is its strength in rare diseases, a high-margin sector that is winning fans in Big Pharma. Yet Glaxo already has access to a rare diseases portfolio after becoming the biggest shareholder in JCR, in March, with a 17 per cent stake. The British company also has less strategic need for a large acquisition than its French counterpart, since it has already put many of its big drug patent losses behind it.