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P.T. Jyothi Datta

Mumbai , May 11

SHAREHOLDERS may flock to Aventis Pharma's shareholder meeting, scheduled for early June, to ferret out information on the course of the company's operations in India - given that it was recently acquired globally by France's Sanofi-Synthélabo.

But with concrete indicators on the course of the acquisition likely to filter through only by late June, clarity still eludes the management of both the companies operating in India, according to analysts.

Interestingly, Sanofi-Synthélabo had postponed its global combined annual general meeting (CAGM) of shareholders, originally scheduled for May 24, 2004.

"This postponement is pursuant to the agreement reached with Aventis on April 25, 2004 relating to Sanofi-Synthélabo's offer for Aventis. A future meeting of the board of directors will set a new date and agenda for the general meeting, which will be held to vote not only on the agenda for the CAGM but also on the resolutions relating to the offer," Sanofi said in a recent communiqué.

However, Aventis is unlikely to defer its shareholder meeting in India, according to analysts, and the meeting is likely to carry out the agenda already laid out "even though the dynamics of Aventis's operations may change in future".

No information on the issue was available from Aventis Pharma.

Industry analysts said that the global acquisition process would be done this year and the Indian implications would be felt possibly only in 2005.

Aventis clocked a net sales of Rs 651 crore for the year ended December 2003, a 5.8 per cent growth over the previous year. With a strong basket of products - including cardiovascular brand Cardace, anti-diabetes product Amaryl, rabies vaccine Rabipur, anti-allergy brand Allegra, and Lantus, touted to be the world's only once-a-day insulin - Aventis stands on strong ground, said analysts.

The company has two manufacturing facilities at Goa and Ankleshwar (Gujarat). Aventis S.A. holds 50.1 per cent equity in Aventis Pharma Ltd in India.

Sanofi, on the other hand, has a marketing presence in India. The domestic operations, which commenced in 1997, are now a 100 per cent subsidiary of Sanofi-Synthélabo.

Its product portfolio includes cardiac drug Plavix, sleep medicine Ambien, and cancer drug Eloxatin. According to analysts, the company clocked revenues of an estimated Rs 85 crore in India.

As a result of the acquisition, Sanofi will get majority stake in Aventis Pharma and it could choose to introduce new products into the country either through the listed entity or the subsidiary, the analysts added.

If Sanofi goes for a reverse merger, the process would be long-winding with valuers being appointed and approvals being sought from regulatory authorities and shareholders.

More Stories on : Mergers & Acquisitions | Pharmaceuticals

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