GlaxoSmithKline and Sanofi-Aventis are both pursuing talks to snap up a majority interest of India's Shantha Biotech in a deal that could be worth more than $200 million, according to a report in an Indian newspaper. Glaxo and Sanofi are in separate talks with France's Merieux Alliance, which owns a majority of the Indian developer.
Shantha is a drug development pioneer in India. The company was the first to develop and market a recombinant product in India.
"The proposed deal will allow the buyer to get a majority stake and management control," according to one source in the story broken by the Economic Times. "Talks are at an initial stage and Merieux is looking at selling its entire 80% stake." Glaxo is reportedly the frontrunner in the talks.
Glaxo and Sanofi both declined to comment. Analysts note that the deal would follow similar match-ups as global pharma companies come shopping for Indian companies that offer low cost research and manufacturing operations. Daiichi Sankyo acquired India's largest drugmaker Ranbaxy for $4 billion last year.
- read the story in the Economic Times