As reported in thepharmaletter, Sanofi-Aventis made a couple of big moves this week to shore up its business. In the first instance, Sanofi worked out an agreement related to generic versions of its cancer
drug Eloxatin (oxalipatin) with its rivals Teva, Fresnius Kabi, and Sandoz. The agreement calls for the three to stop selling the drug in June of this year and allows them to recommence in August 2012. There are still other generic firms, e.g. Sun Pharmaceuticals, operating outside this agreement. It remains to be seen what actions, if any, will occur with them. The deal is subject to review by the FTC, the US Dept of Justice and the State Attorney General's Office in Michigan. The FTC, in particular, is on record against these type of "pay to delay" type agreements as it believes this leads to higher prices for consumers.
Like many other Big Pharma rivals, Sanofi-Aventis also announced it would be investing 150 M Euros to convert existing facilities toward biopharmaceutical and vaccine applications. Approximately 90 M Euros will be spent renovating two of its existing French plants, and another 60 M will be invested toward building a vaccine manufacturing facility in the Rhone. This is in keeping with market trends toward higher growth in biopharma and vaccine segments. Sanofi is better positioning itself to compete with other pharma companies making similar type investments.
Posted by Bruce Lehr April 3rd 2010.