| Brar: French connection
New Delhi, Dec. 13: Domestic pharmaceutical major Ranbaxy Laboratories Limited (RLL) is buying out RPG (Aventis) SA along with its fully-owned subsidiary, OPIH SARL, in France.
Ranbaxy has already signed the agreement, which it says is meant to drive the European expansion plans of the company.
Even though Ranbaxy announced the buyout today, it refused to disclose the financial terms of the agreement. The sale is apparently subject to an agreement with employee representatives of the European firm and permissions from European authorities. The transaction is expected to be completed in the first quarter of 2004, subject to requisite approvals.
RPG Aventis is the generic business of Aventis. The company was ranked fifth in the French generic market with sales of €44 million for the year ended December 2002. A wide-ranging pipeline of 52 molecules with 18 out of the 20 best-selling molecules represents the company’s strong product portfolio. The company is acknowledged as a reputed high quality and reliable generic player and develops products strictly comparable to the original drugs.
The sale of RPG Aventis in France (the only Aventis generic business), reflects commitment of Aventis to focus on its core strategic activities, said a Ranbaxy spokesperson.
Ranbaxy ranks among the world’s leading generic companies and offers real opportunities for RPG Aventis to complement its range of products and secure development resources in a rapidly developing market.
The major therapeutic areas of the company include cardiovasculars, anti-infectives, gastro-intestinals, rheumatoid /non-steroidal anti inflammatory drugs, neurology and analgesics.
France is the fourth largest pharmaceutical market globally with sales of $19.2 bullion, growing at 4 per cent annually and constituting 4.8 per cent of the world pharmaceutical market.
The generics market in France is about €652 million and is the fifth largest after the US, Japan, Germany and the UK. The market has an excellent growth potential.
D. S. Brar, CEO & managing director of Ranbaxy, said, “France is strategic to our European expansion plans. The acquisition of RPG (Aventis) will be a very important move for Ranbaxy as it would place us among the top generic companies in the French market.”
Headquartered in Strasbourg, Aventis generated sales of €17.6 billion in 2002. It invested €3.1 billion in research and development and employs approximately 71,000 people.