Sanofi strengthens vaccines position in India through majority stake in Shantha Biotechnics

Sanofi-aventis has boosted its presence in India by taking control of Shantha Biotechnics, for Euro 550m.

Sanofi Pasteur, the vaccines division of the French drugmaker, is to buy Merieux Alliance's French subsidiary ShanH, which owns 80% of Shantha, based in Hyderabad, India.

Dr Varaprasad Reddy, who founded Shantha Biotechnics in 1993, will continue to lead the company as managing director.

The acquisition of Shantha, which is expected to have sales of around US$90m in the current fiscal year, is set to close before the end of the third quarter.

Alain Merieux will chair the board of ShanH and a new joint committee will be created to develop a vaccine strategy for emerging markets.

Christopher Viehbacher, ceo of sanofi-aventis, said: "Shantha provides Sanofi Pasteur with a portfolio of new vaccines in development, which complement its current vaccines, positioning the company to accelerate its growth in strategically important emerging markets."

Shantha Biotechnics" state-of-the-art manufacturing facilities will give Sanofi Pasteur high-quality capacity to provide vaccines at affordable prices to many people around the world.

Alain Merieux, chairman of Merieux Alliance, said: "During the last three years, we have, together with Dr Reddy, significantly developed the company. We have in particular refocused its activity on vaccines and strengthened its range of products, especially by launching a pentavalent pediatric vaccine as well as a cholera vaccine. We have built up a portfolio of new products, which are in development: rotavirus vaccine, conjugated typhoid vaccine and HPV vaccine.

"Shantha's future development necessitates support from a major international vaccine company. This agreement gives me the opportunity to reconnect with Sanofi Pasteur, a company to which I am historically attached. I am also pleased to remain involved - together with Dr Reddy - in the group's strategy in the domain of preventive medicine and of human vaccines tailored to the countries of the South."

Shantha works with organisations such as UNICEF and PAHO to supply major international markets including Asia-Pacific, Africa and Latin America.