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Sanofi sees acquisition opportunities in China

(Agencies)
Updated: 2009-04-23 19:46

Sanofi-Aventis SA , the world's fourth-biggest drug maker, is seeking acquisition opportunities in China where the government has vowed to beef up its public health care system, its chief executive Chris Viehbacher said on Thursday.

Viehbacher, who took the helm at Sanofi in December, said the company still expects to achieve at least 7 percent growth in earnings per share this year.

The firm had in February forecast at least 7 percent growth in adjusted earnings per share for 2009.

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Sanofi, which competes with Norvial SA and others, sees great growth opportunities in China's efforts to build up the health care network in rural areas, he told reporters.

"It's just a country where this company needs to be very present and I am looking at this market as being at least as important as the United States," Viehbacher said.

He did not name any acquisition targets or suggest the size of potential acquisitions.

Thomas Kelly, vice president of the firm's Greater China operations, said those that would help Sanofi secure a foothold in the country's health care industry or expand into new market segments would make ideal candidates.

Globally, Sanofi has made several takeovers recently as it seeks to cope with expiring patents, including a 500 million euros deal announced earlier this month to acquire Brazil's Medley.

Viehbacherhe had said previously he would target small and mid-sized acquisitions of up to 15 billion euros to build up Sanofi's positions mainly in vaccines, over-the-counter-drugs and in emerging markets.

When asked if Sanofi was involved in acquisition talks, Viehbacherhe said he had no knowledge of that.

Sanofi, which this week announced a $90 million investment in China to boost its output of the insulin Lantus, has seen its sales growing more than 20 percent in the country in the past three years.

Kelly said he expected to maintain the growth momentum in the next few years.