Sanofi launches major new biologics initiative

French drug major Sanofi-Aventis has launched the BIOLAUNCH project at its drug production site in Vitry-sur-Seine, France. The initiative,  which involves an investment of nearly 200.0 million euros ($266.9  million), will give rise to Sanofi's first cell culture biotechnology  platform for the production of monoclonal antibodies, scheduled to start  commercial operations in 2012.

The Paris-based firm, which is the world's third-largest R&D-based  pharmaceutical company by sales, is turning to biologicals to bolster  its flagging pipeline ahead of a wave of costly patent expirations.  Faced with the same problem, most drug majors have been increasing their  presence in these high-margin compounds over the last few years in a  spate of deals that included Eli Lilly's $6.5-billion takeover of  ImClone Systems and AstraZeneca's $15.6-billion purchase of MedImmune.

"With BIOLAUNCH, Sanofi-Aventis will benefit from a complete platform of  expertise in biotechnologies. Monoclonal antibodies will open the way  to a new generation of better targeted and more effective treatments  with fewer side effects," said company chief executive Chris Viehbacher.