The Burrill Report


Aventis Pharma Limited, an Indian drugmaker majority owned by French pharmaceutical Sanofi, is acquiring Universal Medicare Private’s branded health and nutrition supplements business in India, a move to expand its presence in the fast-growing Indian market, and shore up non-prescription revenues.

The boards of both companies have approved the deal and most of the 750 employees of United Medicare’s nutraceuticals unit will transition to Aventis Pharma. Although financial details were not disclosed, Reuters reported the deal value at approximately $109 million, or 5 billion rupees.

The acquisition is in line with Sanofi’s growth strategy. India is an important emerging market for Sanofi. The company has been expanding rapidly in the country, first through taking an 80 percent stake in Indian vaccine maker Shantha Biotechnics in July 2009 for $784 million.

This year, the French pharma struck a major licensing deal with Glenmark Pharmaceuticals to develop and commercialize a novel monoclonal antibody to treat Crohn’s disease and other autoimmune disorders, which could result in as much as $613 million for the Indian pharma. In that deal, Sanofi paid $25 million upfront for the first-in-class investigational therapeutic that had just completed a phase 1 dosing study. Sanofi has exclusive rights in most of the Americas, Europe, and Japan, while Glenmark retains the rights in India and the rest of the world.

With the nutraceuticals business, Sanofi hopes to tap another segment of Indians’ healthcare needs. Mumbai-based Universal Medicare manufactures, markets, and distributes branded nutraceutical formulations in India through its sales and marketing infrastructure. The company’s portfolio of more than 40 branded formulations includes antioxidants, vitamins and mineral supplements, anti-arthritics, anti-osteoporotics, liver tonics, and other nutrients. The business to be acquired had a turnover of approximately $24 million in the fiscal year ending March 31, 2011.

“This strategic acquisition will allow Aventis Pharma and Sanofi Group to reach out to large sections of India’s population through a broad offering comprising of pharmaceuticals, vaccines and now nutraceuticals,” says Shailesh Ayyangar, managing director, Aventis Pharma and vice president of South Asia, Sanofi.

Under the proposed transaction, Universal Medicare will manufacture the products that Aventis Pharma will be acquiring on mutually agreed terms.



August 25, 2011
http://www.burrillreport.com/article-sanofi_ventures_into_nutraceuticals_in_india.html