Sanofi eyeing Brazil generics firm?

French drug major Sanofi-Aventis is in talks to acquire Brazilian generics producer Medley SA at a cost of some 500.0 million reals  ($220.0 million), reports the local newspaper Valor Economico, although  confirmation of any negotiations has not been available from either  party. However, such an acquisition would be in line with the French  company's growth strategy, as recently discussed by its new chief  executive, Chris Viehbacher (Markettetter February 16).

Medley produces mainly generic and over-the-counter medicines and is  sixth in Brazil's pharmaceutical league or third in the list of  domestically-owned companies. The firm is represented in 15 Latin  American countries and, more recently, has been trying to break into the  European market. Growth has come mainly from the export of finished and  semi-finished drugs. Sales of the Sao Paulo-based enterprise are put at  some 275.0 million euros ($351.9 million) a year. One factor seen to be  favoring a rapid conclusion to a deal is that local Brazilian generics  producers are finding access to fresh financing difficult in the current  economic climate.