Sanofi SA, French drug maker, will soon acquire Elder Pharmaceuticals.
The acquisition, valued at Rs 2,200 crore, is expected to be closed in the next few weeks. Elder Pharmaceuticals' recent default on interest payments of Rs 10 crore to debenture holders has expedited the talks for the sale.
While the acquisition will give Elder Pharmaceuticals an opportunity to cash out, it will help Sanofi deepen its penetration into the Indian pharmaceuticals market.
Sanofi earns a third of its revenues from emerging markets, including India, and is looking for acquisition opportunities in emerging markets.