The Hindu Business Line : Merieux acquires Shantha Bio

Merieux Alliance, the French vaccine major, based in Lyon, has acquired majority stake in the Hyderabad-based, Shantha Biotechnics Ltd (SBL). It has acquired 60 per cent stake in the company. This was a private deal therefore the value was not disclosed.

Merieux acquired 50 per cent from some Omani high net worth individuals and 10 per cent from FIs. The main promoter of SBL, Mr K.I. Varaprasad Reddy, and others including Indian FIs hold the balance stake.

Mr Reddy told Business Line, "the acquisition is good for the company as it will become a global R&D hub for vaccine research."

The acquisition strengthens Merieux Alliance's presence in Asia. The French company already has significant presence in Europe and the US in the areas of vaccines, therapeutic proteins and overall preventive medicines.

In partnership with SBL, it aims to develop a global approach in the worldwide fight against infectious diseases. Its involvement in the healthcare chain — prevention, diagnostics, prognosis, new therapies and clinical monitoring, would get a fillip from the move, a press release from Lyon said here today.

Shantha Bio, started by Mr K.I. Varaprasad Reddy in 1993, is the country's first bio-pharmaceuticals company to develop, manufacture and market a recombinant Hepatitis B vaccine in 1997. It has expanded its portfolio with other combination vaccines, as well as with therapeutic proteins and monoclonal antibodies.

The company has sound R&D and a bio production potential conforming to the strictest international quality norms. Shantha Biotechnics employs nearly 650 people and for 2006-07, its turnover is set to exceed 20 million, the company said in the press release.

To favour synergies

"This Indo-French alliance is likely to favour synergies in terms of research and clinical development between the group's companies. Shantha Biotechnics will also have access to the support provided by Mérieux Alliance's international network," said Mr Alain Mérieux, President of the company.

"Mr Varaprasada Reddy would continue as the Managing Director of Shantha Biotechnics, which becomes our worldwide decision centre for our prophylactic vaccine activities. He will be playing an important role at my side in developing the activities of Mérieux Alliance mainly in Asia," he said.

Mr Georges Hibon, who is a Director of bioMérieux, would take over as the Chairman of Shantha Biotechnics. Mr Abhey Yograj, founder of Tecnova India Pvt. Ltd, based in Gurgaon, played a vital role in bringing Shantha Biotechnics and Merieux Alliance together for this Indo-French alliance.

Mérieux Alliance, the family holding company of Mr Alain Mérieux, has set itself the task of constantly improving the levels of care provided to patients throughout the world by using new biotechnological solutions Mérieux Alliance comprises four companies which are dedicated towards biology and public health: These are - bioMérieux (59 per cent stake); - Silliker, in which it has an 85 per cent stake, is based in Chicago, US: - Transgene, Strasbourg, France is a company which is quoted on Eurolist, and in which Mérieux Alliance has a 54 per cent stake and ABL (Advanced BioSciences Laboratories), in which Mérieux Alliance has a 95 per cent stake.

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