Sanofi arm to buy OTC biz of Universal Medicare

2869 Investors following Aventis Pharma. Share this News with them.

0

Like this story, share it with millions of investors on M3

Sanofi arm to buy OTC biz of Universal Medicare

Aventis Pharma, a unit of France's Sanofi, said on Wednesday that it will acquire unlisted Universal Medicare's nutraceuticals business to boost its consumer healthcare and wellness segment in India.

Post your opinion here

 

0

Tweet

Share on Tumblr

Aventis Pharma BSE | NSE 31/05/12 Are Mutual Funds betting on Aventis Pharma?

Aventis Pharma , a unit of France's Sanofi, said on Wednesday that it will acquire unlisted Universal Medicare's nutraceuticals business to boost its consumer healthcare and wellness segment in India.

Shares of Aventis Pharma rose over 7% early on Wednesday.

The transaction is expected to close in the fourth quarter of 2011 and involves transfer of about 750 employees of Universal to Aventis Pharma, the latter said in a statement.

Reuters had reported on Tuesday, Aventis was close to buying the over-the-counter business of Universal Medicare for about 5 billion rupees (USD 109.5 million).

Universal Medicare's turnover of the nutraceuticals business, which comprises of over 40 over-the-counter formulations, was about 1.1 billion rupees, it said without disclosing the deal value.

Universal's portfolio includes cod liver oil capsules Seacod, vitamin supplement tablets Multivite Gold, eyecare brand Selace-i, skin care brand Radiance and pain relief gel Icegel.

"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," Shailesh Ayyangar, managing director, Aventis Pharma, said.

According to the deal, Universal Medicare will manufacture the products and supply them to Aventis Pharma on mutually agreed terms, it said.

Over-the-counter products made by Indian firms have been acquisition targets for multinational drug companies looking to expand their footprint in fast-growing markets.

In December, British consumer goods company Reckitt Benckiser agreed to buy privately-held Indian firm Paras Pharmaceuticals, which makes a number of medications, for about USD 726 million.

In May, Johnson & Johnson agreed to buy several over-the-counter medicines sold in Russia from India's JB Chemicals and Pharmaceuticals Ltd for about USD 260 million.

Shares of Aventis Pharma, which have gained 6.2% this year, compared to a 12.4% drop in the broader India healthcare index, were trading up 5.82% at Rs 2,161.80 at 0542 GMT in a weak Mumbai market on Wednesday.