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Big Pharma’s Global Generics Push Continues With Sanofi Deal

Quick, who’s the biggest generics manufacturer in Latin America?Those who guessed generics giants like Teva or Mylan, thanks forplaying. The answer is Sanofi-Aventis, a Big Pharma shop nottypically lumped among the generics crowd.

Sanofi said today that it’s paying ?00 million (about $660 million)for Medley, a family-owned drug manufacturer in Brazil. Theacquisition will make Sanofi Latin America’s biggest genericsmanufacturer, Dow Jones Newswires reports.

As growth has slowed for Big Pharma’s traditional cash cows —blockbuster drugs sold in rich countries — the industry hasincreasingly looked to middle-income countries and off-patentdrugs.

The Medley deal comes just a week after Sanofi said it boughtMexico’s Laboratorios Kendrick for an undisclosed sum. And lastyear, the company paid $2 billion for the shares outstanding ofCzech company Zentiva, a bet on both Eastern Europe and thegenerics business.

Some of Sanofi’s long-time competitors are making similar moves.Pfizer last year created an “established products” unit to focus onglobal sales of off-patent drugs, and last month announced a dealwith India’s Aurobindo Pharma to expand its line of generics.

GlaxoSmithKline made a deal last year with South Africa’s Aspen tosell off-patent drugs in the developing world. And, through itsSandoz unit, Novartis is an old hand in the generics business

http://blogs.wsj.com/health/2009/04/09/big-pharmas-global-generics-push-continues-with-sanofi-deal/

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