Margaux Bruneau de la Salle and Mark Thomas
One of major preoccupations of human resources (HR) in recent times has been the challenge of proving its value at the “top table.” Mergers and acquisitions (M&As) may offer one…
Abstract
Purpose
One of major preoccupations of human resources (HR) in recent times has been the challenge of proving its value at the “top table.” Mergers and acquisitions (M&As) may offer one potential solution to this problem. M&As are renowned for the key management problems they generate such as diminished employee engagement and morale and increased staff turnover. However, such challenges also offer opportunities. This paper aims to argue that the recent wave of acquisitions in the pharmaceutical industry present HR with the possibility to demonstrate its real strategic value.
Design/methodology/approach
This paper offers an insider–outsider approach to the role of HR in M&As in the pharmaceutical industry. Based on an in-depth study of Sanofi’s emerging M&A strategy, it gives key insights into the reasons for multiple acquisitions and how HR can have a positive impact on value creation.
Findings
The findings demonstrate that the repeated acquisitions of US-based biotech companies made by the French pharmaceutical group Sanofi over the past five years is more than just a coincidence. Rather, it is an unstated strategy to develop within this market. HR can aid senior management in overcoming some of the major cultural challenges, thus demonstrating its real strategic value.
Originality/value
This paper clearly shows how following a specific emerging international strategy of M&As can empower a company through its human resources.
Details
Keywords
Margaux Bruneau de la Salle and Mark Thomas
The biotechnology (biotech) and pharmaceutical (pharma) industries have a lot of similarities, particularly regarding their mission to provide lifesaving and life-improving drugs…
Abstract
Purpose
The biotechnology (biotech) and pharmaceutical (pharma) industries have a lot of similarities, particularly regarding their mission to provide lifesaving and life-improving drugs. However, there are some key distinctions between the two industries. It is these differences, however, that make that ideal partners and have resulted in a wave of mergers and acquisitions between the two industries.
Design/methodology/approach
This research paper offers an insider-outsider approach to the biotechnology and pharmaceutical industries. Based on an extensive review of the industries it offers key insights into the reasons for the multiple partnerships that have developed.
Findings
The findings demonstrate that the different stages of maturity of the business models of biotech and big pharma make them ideal partners. Both rely on the advantages of the other in their development, hence the wave on M&As between the two industries.
Originality/value
This article clearly shows how two firms or industries at different stages of maturity can be mutually beneficial. This has led to many acquisitions and mergers.