Sanofi to sell generics unit for 1.9 billion Euros

Global investment group Advent International says it has entered into negotiations to buy Sanofi’s generics arm Zentiva for 1.9 billion Euros ($2.4 billion).

“Zentiva is a robust business with a highly talented workforce and we believe it has demonstrated its potential for growth. Following a comprehensive review of strategic options for our generics unit in Europe, we have determined that transferring this business to Advent is the best option to ensure its long-term success,” said Olivier Brandicourt, Sanofi’s Chief Executive.

Advent managing directors Tom Allen said that the move would create a new, independent European Genetics Leader. “We have long been attracted to the generic pharmaceutical sector as it enables more people to access high quality treatments by lowering their cost. We believe that Zentiva is a great platform, full of talented people, who we can invest behind to build a new, independent, European generics leader.”

The move keeps in line with Sanofi’s remit to simplify and reshape it’s business operations, with the transaction expected to close by the end of the year.