Sanofi acquires Shantha Biotech

French pharma major Sanofi-aventis on Monday said that its vaccine division Sanofi Pasteur has acquired 80 per cent stake in Shantha Biotechnics for around Rs 3,000 crore.
The stake was acquired through buying out Shantha Biotechnics’ holding company ShanH, the French subsidiary of Merieux Alliance, which had bought controlling stake in the Hyderabad-based pharma company in November last year.
Sanofi-Aventis said in a statement that it has signed with Merieux Alliance a strategic agreement for the acquisition of Merieux Alliance’s French subsidiary ShanH, which owns a majority stake in vaccine company Shantha Biotechnics.
“The transaction, set to close before the end of the third quarter, values Shantha at 550 million euros,” the statement added.
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, it said.
Shantha Biotechnics officials were not available for comment.
Under the terms of the agreement, Dr Varaprasad Reddy, who founded Shantha Biotechnics in 1993, will continue to lead the company as managing director.
For the current fiscal year, sales of Shantha are expected to be around $90 million.
“Its sales are expected to grow significantly given the commercial resources of Sanofi Pasteur and through the development and launch of Shantha’s pipeline of new vaccines,” the statement said.

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