PR Newswire/Les Echos/
Sanofi-aventis Press Release
Sanofi-aventis Signs Agreements to Establish New Consumer Healthcare Joint
Venture in China with Minsheng Pharmaceutical Group
- Sanofi-aventis Poised to Enter the Dynamic Consumer Healthcare Market in
China -
Paris, France - January 29, 2010 - Sanofi-aventis (EURONEXT: SAN and NYSE: SNY)
signed agreements today with Minsheng Pharmaceutical Co., Ltd to form a new
consumer healthcare joint venture. Subject to certain conditions precedent and
to regulatory approvals, sanofi-aventis is to obtain a majority equity stake in
the new venture. The agreements were signed in the presence of senior leaders
of the Hangzhou municipal government.
The intended sanofi-aventis-Minsheng joint venture will primarily focus on
Vitamins and Mineral Supplements (VMS), the largest consumer healthcare segment
in China, where Minsheng has established a strong presence with its flagship
multivitamin brand of 21 Super-Vita(r). Globally, sanofi-aventis is the 5th
largest consumer healthcare company, and the French group continues to expand
its presence through mergers and acquisitions. Most recently, sanofi-aventis
announced its planned acquisition of Chattem Inc., a leading manufacturer and
marketer of branded consumer healthcare products, toiletries and dietary
supplements in the United States, a country that represents 25 percent of the
worldwide consumer healthcare market.
"We are pleased to take a significant step toward establishing the new consumer
healthcare joint venture with Minsheng, our long-standing partner", said
Hanspeter Spek, President, Global Operations, sanofi-aventis. "Combined with
our leadership position in vaccines, we will continue to contribute to
preventative healthcare in China. Entering the world's second largest consumer
healthcare market is also a strategic move for sanofi-aventis to consolidate
its position in consumer healthcare", added Hanspeter Spek, who presided over
the signing ceremony together with Minsheng and senior leaders of Hangzhou
municipal government.
"We are equally excited about the prospect of forming the new consumer
healthcare joint venture with sanofi-aventis, after more than ten years of
successful partnership." said Zhu Fujiang, Chairman of Minsheng Pharmaceutical
Co., Ltd. He added: "Sanofi-aventis is an energetic and dynamic company. His
success with pharmaceuticals and vaccines has demonstrated his strong marketing
capability. We hope that once materialized, the new venture will revitalize our
consumer healthcare business and expand the reach of our products to bene fit
more consumers. We also hope that the new venture will serve as a platform for
us to develop more health products in order to contribute to the local economy
and meet consumer needs".
In 2008, the consumer healthcare market in China was estimated to approach
7 billion Euro (approximately 70 billion RMB). The market is forecasted for
continued double-digit growth over the next five years, driven by favourable
market trends, such as increasing consumer affordability, government focus on
health awareness and prevention driving an already well-established trend for
self medication, and proliferation of pharmacy chains and modern trade.
About sanofi-aventis China
Sanofi-aventis is one of the first foreign pharmaceutical companies to open
offices in China. It is also one of the fastest growing healthcare companies in
China, with leading products covering vaccines and major therapeutic areas,
such as cardiovascular/thrombosis (Plavix(r), Clexane(r) Aprovel(r)/
Co-Aprovel(r), Cordarone(r)), diabetes (Lantus(r), Amaryl(r)), oncology
(Taxotere(r), Eloxatin(r)), internal medicine (Essentiale(r), Targocid(r)), and
central nervous system (Rilutek(r), Stilnox(r), Depakine(r)). Sanofi-aventis
currently employs 3,500 people in 200 cities across China.
In October 2008, sanofi-aventis announced its R&D expansion in China, which
allows rapid growth of clinical programs and aims to encompass all activities,
from drug-target identification to late-stage clinical studies in China.
Sanofi-aventis has three manufacturing sites in Beijing, Hangzhou and Shenzhen.
In 2007, the company invested 94 million USD (700 million RMB) to establish a
high-tech manufacturing facility in Shenzhen to produce Vaxigrip(r) for the
prevention of seasonal influenza and to contribute to pandemic readiness in
China.
In April 2009, sanofi-aventis announced an increase of investment in the amount
of US$90 million (600 million RMB) to extend its current manufacturing facility
in Beijing and to build pre-filled injection production lines for Lantus(r)
(insulin glargine) SoloSTAR(r).
Also in April 2009, sanofi-aventis announced an investment of 410 million RMB
(44 million Euro) to relocate its current manufacturing facility from downtown
Hangzhou and build a new manufacturing site in Binjiang New Development Zone.
The site is expected to undertake an upgrade of technologies and equipment, and
become an export hub to other Asian countries.
In October 2009, Merial, the Animal Health division of sanofi-aventis,
announced an investment of over 70 million USD to expand its facility in
Nanchang, Jiangxi Province. The facility produces poultry vaccines for the
domestic Chinese market. Merial Animal Health Co. (China) has been in operation
for almost 20 years.
About sanofi-aventis
Sanofi-aventis, a leading global pharmaceutical company, discovers, develops
and distributes therapeutic solutions to improve the lives of everyone.
Sanofi-aventis is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).
About Minsheng Pharmaceutical Group
Minsheng Pharmaceutical Group is one of the first western medicine
manufacturers in China, with over 80 years of establishment. It currently has
a strong presence in multivitamins, anti-cancer, cardiovascular and transfusion
products. In particular, 21 Super-Vita(r) is a leading multivitamin brand in
China. Minsheng Pharmaceutical Group intends to focus on ophthalmology &
otorhinolaryngology, plasma substitute, nutritional transfusion, and
international projects over the next stage of its development.
Forward Looking Statements
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Private Securities Litigation Reform Act of 1995, as amended. Forward-looking
statements are statements that are not historical facts. These statements
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include those discussed or identified in the public filings with the SEC and
the AMF made by sanofi-aventis, including those listed under "Risk Factors"
and "Cautionary Statement Regarding Forward-Looking Statements" in
sanofi-aventis' annual report on Form 20-F for the year ended
December 31, 2008. Other than as required by applicable law, sanofi-aventis
does not undertake any obligation to update or revise any forward-looking
information or statements.
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