Alain Merieux and Pierre Fabre surprised the world by announcing the merger of the two companies they founded, bioMerieux, the world's eighth largest diagnostics company, and Pierre Fabre, the second largest pharmaceutical house in France. The stated purpose of the proposed merger is to allow both companies, which will have combined sales of $1.6 billion, to better compete in consolidating industries than either could on its own. They will focus on four therapeutic areas, with a goal of linking diagnostics to therapeutics. The companies are unlikely partners from a strategic point of view: bioMerieux makes in vitro diagnostics instruments and reagents, while Pierre Fabre is a mid-sized pharma company.
Alain Merieux and Pierre Fabre are founders of two of France's
most eminent private health care suppliers—bioMerieux SA , the world's eighth largest diagnostics
company, and Pierre Fabre SA , the
second largest privately held French pharmaceutical company. Both
men, who are in their 70s, are long-time friends, facing retirement
and the challenges of bringing their companies into the 21st
century.
And that may go a long way towards explaining their surprising announcement that they are merging their companies to form...
