Sanofi India's fortune looking up

Mumbai: Sanofi- Synthelabo's decision to acquire Aventis will bring cheers to the former's Indian subsidiary Sanofi-Synthelabo India Ltd, an unlisted entity as the company is likey to get strong push in the Indian market. Sanofi India, which is currently scouting for a strong acquisition target will get a ready-made market in India , if the parent decides to merge Aventis Pharma India with Sanofi India.

When contacted, Shailesh Ayyangar,managing director Sanofi India said, "The deal is just announced. The Indian secnario is not yet clear." Aventis in India has sales turnover of Rs 651.6 crore, while it's profit after tax is Rs 91.6 crore. Avetis India closed at Rs 780 at the Bombay Stock Exchange on Friday. Sanofi India has a turnover of Rs 90 crores. According to analysts, the acquisition will offer a good therapeutic mix to Sanofi in India.

Currently Sanofi-Synthelabo (India) specialises in 4 main therapeutic groups, Thrombosis (major brands- Faxiparine, Tyklid and Plavix) Cardiovascular (Adenocor, Primacor) Neurlogy,(Valparin, Jume) and Internal Medicine( Ladogal Lactacyd,Fortagesic and Calcium Resonium), while Aventis India has presence in diabetes, pain-relief and cardiovascular segments and vaccine business. "Though there is a product overlap in cardio vascular segment, the integrated entity will offer a strong product mix which will ultimately improve the bottomline." a pharma analyst said.

Aventis Pharma India had done a star turn in 2003 by focusing on its strategic brands to drive growth. Key brands such as Cardace (40 per cent growth on a quarter-to-quarter basis), Clexane (17 per cent), Amaryl (23 per cent) and Targocid (29 per cent) continued to post impressive growth; Aventis derives close to 30 per cent of its revenues from this product cluster.

These brands address lifestyle diseases and are also outside the ambit of price control. Aventis has also benefited from the strong support it receives from its parent for product roll outs.