Ranbaxy Laboratories Limited has signed an agreement to buy RPG (Aventis) SA along with its fully owned subsidiary, OPIH SARL, in France. The sale would mark Aventis’s exit from generic business.

The sale of RPG (Aventis) in France reflects the commitment of Aventis to focus on its core strategic activities. Ranbaxy ranks amongst the world 's leading generic companies and offers real opportunities for RPG (Aventis) to complement its range of products and secure development resources in a rapidly developing market, stated a company release.

Commenting on the announcement, DS Brar, CEO & managing director, Ranbaxy, said, "France is strategic to our European expansion plans. The acquisition of RPG (Aventis) will be a very important move for Ranbaxy as it would place us amongst the top generic companies in the French market".

RPG (Aventis) was ranked fifth in the French generic market with sales of EUR 44 mn for the year ended December 2002. A wide-ranging pipeline of 52 molecules with 18 out of the 20 best selling molecules represents the company's strong product portfolio. The company is acknowledged as a reputed high quality and reliable generic player and develops products strictly comparable to the original drugs. The major therapeutic areas of the company include cardiovasculars, anti-infectives, gastro-intestinals, rheumatoid/non-steroidal anti inflammatory drugs, neurology and analgesics.

The financial terms of the agreement have not been disclosed. The sale is subject to the legal process of consultation with employee representatives. The transaction is to be completed in the first quarter of 2004, subject to requisite approvals, the release said.

France is the 4th largest pharmaceutical market globally with sales of USD 19.2 bn (MAT Dec 02), growing at 4 per cent annually and constituting 4.8 per cent of the world pharmaceutical market. The generics market in France is about EUR 652 mn and is the 5th largest after US, Japan, Germany and UK. The market has an excellent growth potential.