Sanofi-aventis'
Maybe it's more what Viehbacher said the company wouldn't do that made investors so happy. Much like his former employer, GlaxoSmithKline
What a bloody good idea. There's much more value tucked away in the smaller companies. Something I thought Pfizer should have noticed. Besides, "Sanofi-aventis-Bristol-Myers Squibb" would use up more than its fair share of hyphens.
Sanofi-aventis will certainly experience severe revenue drops if it doesn't do anything. Blood thinner Plavix, which it sells with Bristol-Myers Squibb
But I believe those drops in revenue are already priced into the stock, which is trading at less than nine times last year's earnings. Doing something, just for the sake of doing it -- hey there, Pfizer -- doesn't make a whole lot of sense for investors.
As long as you can trust management to be value investors and not overpay just to push out the patent cliff a few years, Sanofi-aventis looks like a decent investment right now.