The Hindu Business Line : Ranbaxy buys Aventis' generics unit in France

PHARMACEUTICAL major Ranbaxy Laboratories Ltd on Saturday announced that it has inked an agreement to buy RPG (Aventis) SA, along with its fully owned subsidiary OPIH SARL, in France.

The transaction is expected to be completed in the first quarter of 2004, subject to the legal process of consultation with employee representatives, a Ranbaxy communiqué issued here said. The acquired company has its strength in therapeutic areas including cardiovasculars, anti-infectives, gastro-intestinals, rheumatoid/non-steroidal anti-inflammatory drugs, neurology and analgesics.

While the financial terms of the transaction have not been disclosed, according to industry sources, the deal was sealed for an amount ranging between $50 million and $60 million (about Rs 300 crore). However, no official confirmation was forthcoming.

The acquisition of RPG Aventis would help Ranbaxy get into a market where it did not have a presence, company sources said. The generics arm of Aventis is a business unit that undertakes sales and marketing and has an 80-people strong workforce, the official added.

Aventis' exit from the generics business and the subsequent sale of RPG Aventis — the company's only generic business — was imminent given Aventis' intentions to focus on its core strategic activities.

The generics business in France is estimated to be about 652 million euros and in size is smaller than only the US, Japan, Germany and the UK. RPG Aventis was ranked fifth in the French generic market with sales of 44 million euros for the calendar year ended December 2002, the communiqué said. The acquired company has a pipeline of 52 molecules, comprising 18 of the 20 best selling molecules, it added.

Meanwhile, France is the fourth largest pharmaceutical market globally with sales of $19.2 billion, growing at 4 per cent annually and constituting 4.8 per cent of the world pharmaceutical market.

Aventis develops prescription drugs and human vaccines and has invested 3.1 billion euros in research and development. Headquartered in France, the company employs about 71,000 people in its core business.

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