The document discusses research and development (R&D) ratios and Sanofi-Aventis' R&D expenditures over time. It notes that Sanofi-Aventis was formed through the merger of Sanofi and Aventis in 2004. From 2001-2004, both companies maintained an R&D intensity of around 16%, but in 2004 after the merger, R&D intensity increased dramatically to 50% as R&D expenditures rose significantly that year. The document also presents Sanofi-Aventis' continued R&D spending and intensity levels from 2004-2008.

1. Research and DevelopmentSanofi-AventisBS4Danil+Eric+Karim+Andrew+David

2. What is R&D for you?

3. Telecom

4. Pharmacy

5. Car maintenance

6. Construction

7. Agriculture

8. Main R&D ratios in Accounting

9. R&D Intensity R&D expenses / SalesR&D per employee R&D expenses / N of employeesR&D growth rate R&D expenses Year 2/ R&D expenses Year 1

10. =R&D investments Market ValueLev and Sougiannis, 1996, Studies Outcome for US & UK

11. R&D Intensity for different businessesR&D Scorecard – UK DTI

12. Sanofi-AventisCase Study

13. FrenchPharmacyFounded in 1976 by ElfNumber of acquisitionsSanofi

14. Sanofi

15. FrenchPharmacyTherapeutic proteinsFounded 1999Aventis

16. Aventis

17. Sanofi2001Net SalesR&D expensesR&D intensityR&D growth

18. Sanofi20012002Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%

19. Sanofi200120022003Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%

20. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%

21. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%2001Aventis

22. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%22941(3481)15%Net SalesR&D expensesR&D intensityR&D growth20022001Aventis

23. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%20622(3420)17%-2%22941(3481)15%Net SalesR&D expensesR&D intensityR&D growth200320022001Aventis

24. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%20622(3420)17%-2%22941(3481)15%17815(2924)16%-15%Net SalesR&D expensesR&D intensityR&D growth2003200220012004Aventis

25. Sanofi2001200220032004Net SalesR&D expensesR&D intensityR&D growth6448(1253)16%7448(1378)16%18%8048(1428)16%8%20622(3420)17%-2%22941(3481)15%17815(2924)16%-15%Net SalesR&D expensesR&D intensityR&D growth2003200220012004Aventis

26. Sanofi-Aventis2004

27. Sanofi-Aventis15043(7455)50%Net SalesR&D expensesR&D intensity2004

28. 2001200220032004Net SalesR&D expensesR&D intensity6448(1253)16%7448(1378)16%8048(1428)16%15043(7455)50%20622(3420)17%22941(3481)15%17815(2924)16%Net SalesR&D expensesR&D intensity2003200220012004

29. Paradox

30. ?One Manager Banker 20032004(thank you prof. Capkun)8048(1428)16%15043(7455)50%17815(2924)16%320 pages

31. AventisSanofi-AventisR&D expenses20622(3420)17%22941(3481)15%17815(2924)16%+2003200220012004….($5046)($2409)($7455)R&D expensesNet SalesR&D intensity1504350%

32. Sanofi-Aventis200420062007200815043(7455)50%28052(4537)16%27568(4575)16%28373(4430)16%Net SalesR&D expensesR&D intensity

33. Class QUIZ?

34. Class QUIZ?What are the three main ratio used in accounting for analysing R&D expenditure?R&D Intensity R&D per employee R&D growth rate

35. Class QUIZ?Name three industries with high R&D intensity.PharmacyElectronicsSoftware

36. Class QUIZ?How should R&D expenses be treated in accounting while merging two companies?Estimate Market value of R&D of acquired company up to dateAdd it to current yearly R&D expenses of acquiring company