Sanofi-Aventis in advanced talks to buy majority stake in Universal Medicare to scale up OTC biz in India

NEW DELHI: Sanofi-Aventis is in advanced talks for a strategic tie-up with nutraceuticals firm Universal Medicare, maker of popular codliver oil capsules brand Seacod, which will help the French drugmaker scale up its over-the-counter (OTC) business in India.

According to a person close to the deal, Sanofi-Aventis may buy a majority stake or key brands valuing the Indian company at around Rs 450 crore. The privately-held Indian drugmaker, owned by Vikram Tannan and family, has annual sales of Rs 100 crore.

Both the Sanofi-Aventis spokeswoman and Universal Medicare CEO SM Kanwar declined comment.

According to Universal Medicare's website, the Mumbai-based company makes OTC products used to treat osteoporosis, arthritis and women's healthcare. It has 700 sales people across three marketing divisions. India is among the world's fastest-growing drug retail markets, with the consumer healthcare and OTC segment growing at 20% annually.

Another executive privy to the talks said investment banking firm O3 Capital has the mandate for the proposed sale and the Indian company has also held talks with Abbott Laboratories and GlaxoSmithKline. O3 executives also declined comment.

In India, Sanofi-Aventis operates through five entities, including the listed Aventis Pharma whose share closed at 2,045, down 0.20%, on the Bombay Stock Exchange on Monday.

Globally, Sanofi-Aventis has chalked out a strategy to create new avenues of sales to compensate an imminent loss of revenues in two-three years as patents for top-selling drugs expire.