The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Trends Update — IP Constituencies: Rumors about GSK-Shantha Biotech

B&W_BlankMap-World-nobordersSince we’ve been following innovative activity in India and China as part of our Trends in 2009 series, we had noted a report at the end of March that GlaxoSmithKline and Sanofi-Aventis were each in talks to buy a majority stake in the Indian company Shantha Biotech from France’s Merieux Alliance, which owns 80 percent of the company.

A report in India’s Economic Times today, picked up by FierceBiotech, says that Sanofi had dropped out and that the deal with GSK has “[o]nly a few matters relating to the valuation” remaining.  This is a bit like saying Israel and the Palestinians are close to a peace accord with only a few matters related to borders remaining.  Hopefully GSK and Shantha/Merieux are closer (and friendlier) than that, but valuation is obviously a big issue, so I wouldn’t be counting any biosimilars before they hatch.

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One response to “Trends Update — IP Constituencies: Rumors about GSK-Shantha Biotech

  1. Ramesh June 5, 2009 at 3:51 pm

    I concur with your views and appreciate comments. I am eager to see GSK taking over Shantha. It would only be then that they(GSK) will know why precisely Merieux wanted to get rid of this innovative indian company. This sell will also be an acid test of the integrity of the first family of world biotech (Merieux family).

    GSK is struggling in Nashik, India, to commission a small vaccine fill finish unit from past five years. How do they manage this elephant with so many regulatory, management and HR issues, is need to be seen. It would be a great fun to watch this marriage.

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