Sanofi sells another castoff to private equity firm after last year's $2.2B Zentiva deal   

Sanofi India is selling a 32-year-old plant in Ankleshwar to a private equity firm as Sanofi focuses in the country on branded drugs like multiple sclerosis drug Aubagio. (Sanofi India)

 

Private equity investor Advent International has picked up another piece of Sanofi that it is shedding as the French drugmaker sharpens its focus on branded drugs. After laying out $2.2 billion for Sanofi’s generics operation Zentiva last year, it has followed up with a much smaller deal.

Sanofi India today announced the sale of a manufacturing plant in Ankleshwar, Gujarat to Advent’s Zentiva for Rs 2,617 million ($36.5 million). The 32-year-old plant produces intermediates and formulations and has an annual capacity for more than 6 billion tablets.

“Sanofi’s long-term strategy is to focus on manufacturing Sanofi branded products. Given that the two companies share similar values and commitment towards serving patients and their employees, the Board of Directors of Sanofi India Limited approved this transaction in the long-term interest of all stakeholders.” Rajaram Nayayanan, managing director of the Sanofi company, said in a statement

Sponsored by Lubrizol Life Science

[Webinar] Cannabinoid Formulation - from Farm to Pharma

Wednesday, June 24, 2020 | 12pm ET / 9am PT

A handful of cannabinoid-based pharmaceutical products are on the market today, and an ever-growing number are in the global development pipeline. This webinar will explore key considerations in developing cannabinoid-based pharmaceutical products, including an overview of global pharmaceutical cannabinoid usage today, common challenges formulating with CBD and other cannabinoids, and more.

The Ankleshwar plant, the oldest of Sanofi India, produces products such as pain reliever Combiflam, hay fever treatment Allegra and diabetes treatment Amary. Production of those drugs will be transferred to other Sanofi plants, the company said. 

RELATED: Advent, near deal to buy Sanofi's Zentiva, lays out big goals for generics business

Advent, which buys pharma and other businesses globally, last year completed a $2.2 billion deal for Zentiva, after Sanofi looked for a buyer for a couple of years. Sanofi had acquired control of the Czech generics operation in 2008 for $2.6 billion. 

Advent has been mentioned as among potential buyers for assets that GlaxoSmithKline and Pfizer will shed to satisfy regulators as they prepare to merge their consumer drug businesses later this year. 

Suggested Articles

AZ's tremelimumab has so far suffered a host of clinical failures. But new trial results show the company might be able to use the drug in a new way.

Roche may have just grabbed the first FDA nod for a checkpoint med in previously untreated liver cancer, but Merck is hoping it won’t be far behind.

Pfizer’s Ibrance has met with success in breast cancer since breaking onto the scene in 2015. But its first foray into early breast cancer was a bust.