France's biggest drug maker, Sanofi-Aventis will acquire majority control of unlisted Indian vaccines maker Shanta Biotechnics in a deal that values the unlisted Indian company at nearly Rs3,757 crore ($781 million / 550 euros).
Paris-based Sanofi-Aventis said that its vaccine division, Sanofi Pasteur would acquire Merieux Alliance's French subsidiary ShanH, which owns 80 per cent of unlisted Shantha Biotech.
Mérieux Alliance and Sanofi Pasteur have a common heritage originating from Institute Mérieux, which was founded in 1897 by Marcel Mérieux, a student of Louis Pasteur and Alain Mérieux's grandfather.
Alain Mérieux will chair the board of ShanH and a new joint committee will be created to be chaired by Alain Mérieux on vaccine strategy for the emerging markets, a company press release said.
Under the terms of the agreement, Sanofi Pasteur, the vaccines division of the Snofi-Aentis group, will support Shantha's ongoing development as a platform to address the need for high quality affordable vaccines in international markets.
Dr Varaprasad Reddy, the founder of Shantha Biotechnics, will continue to lead the company as managing director. The transaction is to close before the end of the third quarter.