Why Bristol And Sanofi Shouldn't Merge
Pharmaceutical investors are enthused about the merger rumor du jour: the potential acquisition of New York drug maker Bristol-Myers Squibb by Paris-based Sanofi-Aventis. A French newsletter reported that the companies are in talks, while Bristol may have even hired bankers to scope out potential deals. Bristol-Myers shares have jumped nearly 10%.
In the long term, though, such a deal is probably a bad idea, one of those short-term fixes that has left drug companies scrambling to reinvigorate their research labs as fewer and fewer medicines actually make it to patients. It would be best for long-term investors and the drug industry if Bristol (nyse: BMY - news - people ) doesn't sell out.
Bristol and Sanofi chose not to comment for this story.
In the long term, though, such a deal is probably a bad idea, one of those short-term fixes that has left drug companies scrambling to reinvigorate their research labs as fewer and fewer medicines actually make it to patients. It would be best for long-term investors and the drug industry if Bristol (nyse: BMY - news - people ) doesn't sell out.
Bristol and Sanofi chose not to comment for this story.
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