Sanofi confirms buy of Brazil's Medley

French drug major Sanofi-Aventis has finally confirmed its acquisition of Medley, the third-largest pharmaceutical firm in Brazil, and the  number one generic drugs group in the country, an area into which the  company has been moving steadily, with the purchase of Zentiva in the  Czech Republic and Kendrick in Mexico (Marketletters passim).

The purchase price for Medley is 1.5 billion real ($674.8 million), with  a closing of the deal, subject to certain conditions, expected in the  second quarter of this year. The Brazilian firm had sales last year of  around 485.0 million real, two thirds of which were generated from copy  drugs, comprising a portfolio of 127 products. The nation's  pharmaceutical market is forecast to grow over 20% per annum in the  coming years, from its current level of around $12.2 billion, according  to IMS Health figures.

The addition of Medley will enable Sanofi to reinforce its number one  ranking in Brazil, with a total 12% market share, and the French group  will become the generics leader in Brazil and Latin America, it claims