Local TOP drugmakers bid for Sanofi's European generics business

Pharmaceutical Network January 15, according to foreign media revealed that a Chinese "TOP" pharmaceutical company will join a number of Indian bid slots for French pharmaceutical giant Sanofi's European generic sujiaxus businessSanofi CEO Olivier Brandicourt proposed in November 2015 that it would spin off its European generics division and animal health unit MerialJust a month later, Merial struck a swap agreement with the consumer health division of Burlinger's China operations, while plans for the sale of the European generics business were delayedUntil March 2017, Reuters reported that Sanofi would sell the business for $2.1 billion, which was finalized at the end of the month, but there was no newsAnd at this week's JP Morgan conference, Brandicourt revealed that Sanofi's European generics will be confirmed by the end of 2018 and That Sanofi will focus on emerging markets for generics in other countriesThe deal is valued at $1.5 billion to $2 billion, lower than the online price spread in early 2017, according to people familiar with the matterSanofi responded by email and is currently conducting a financial assessment of the divestitureSanofi bought Zentiva, a Czech generic drug maker, for $2.6 billion in 2008 to expand into Central and Eastern EuropeZentiva is responsible for the production of a variety of well-known generic drugs, including Sanofi Polivi and Amberway, and has a sales network of more than 50 countries and marketsThe complexity of the European market has increased due to limited geographic synergies, and Brandicourt said it would cut Sanofi's spending by about $1.63 billion over five years from 2015, prompting Sanofi to spin off its European generics businessnearly two years, Sanofi's European generics business has indeed been showing signs of declineThe business segment performed about 1 billion euros in 2015 and 571 million euros in the first nine months of 2017, down 5.9 percent from the same period in 2016Analysts said that while the business sector's performance was falling, for the Indian drugmakers, the acquisition of the unit would help them expand into overseas markets, such as Intas, which have already laid the groundwork in the UK market, and Torrent Pharma and Zydus Cadila, which already have a presence in india'smarketAlthough the $7.5 billion U.Sgeneric selling market has become quite large, but there is still a lot of room for expansion, but the pressure of price cuts brought by the payer coalition poses challenges for drug companies, to some extent affecting product salesIn addition, Sanofi is facing increasing competition in the diabetes sector, with its global performance growing by only 0.6% in the first half of 2017, a flat performance Clearly, Sanofi needs to consider how to salvage the situation and chinese pharmaceutical companies that will bid for Sanofi's European generics division, foreign media did not give further details But the contrast between the not-so-busy overseas acquisitions of local drug companies in 2017 seems like a sign that another wave of overseas mergers and acquisitions is on the horizon is now playing bigger and bigger for Chinese pharmaceutical companies that are now "strong and strong" in terms of financial strength It is no longer willing to buy a small business, but is interested in the global giant's spin-off, although there have been rumours, such as that The Network Fosun and The Pharmaceuticals bid for Star, while Merck's divestiture , a $4 billion sale, is said to have been approached by the local Chinese medicine giant, and it is reliably reported that a Chinese pharmaceutical company is preparing to join JD.com in its bid to buy jd.com," the largest U.S company has been approached Although there are more and more acquisitions by local pharmaceutical companies, such a $2 billion acquisition has not yet emerged, and if it is done, it will be a landmark event But who will this ?