3. Sanofi and Covance
3. Sanofi and Covance:
In 2010, when it was Sanofi-Aventis, the pharma giant ($SNY) was in need of revamping its R&D structure and looked toward outsourcing to take a load off its back. At some point, Sanofi must have noticed the sweet $1.6 billion deal Covance ($CVD) made with Eli Lilly ($LLY) in 2008 and figured that forging a similar partnership with the CRO was the way to go. The agreement between Covance and Lilly was the only CRO/Pharma partnership to make FierceBiotech's top 10 deals of 2008 list, after all.
Thanks to the $2.2 billion deal, Sanofi-Aventis and Covance formulated a 10-year partnership that gave each entity something more to sink its teeth into. For Covance, the deal allowed it to purchase two of Sanofi's European facilities for $25 million and acquire the pharma's (CMC) chemistry, manufacturing and controls services. In return, Sanofi gained access to Covance's global R&D portfolio of discovery support, toxicology, chemistry, clinical Phase I-IV, central laboratory and market access services.