Sanofi Buys Mexican Generic Drug Maker

Sanofi Aventis’s Mexican subsidiary has acquired local generic drug maker Laboratorios Kendrick. Although it did not disclose financial terms, analyst Linda Bannister of Edward Jones believes this is a small deal for Sanofi, as Kendrick’s sales for 2008 amount to MXP500m. Sanofi’s Mexico operations generated about €600m in 2008 sales, according to company information. Bannister, who has a hold recommendation on Sanofi stock, says it is possible this was a cash deal. The company claims to have about €4bn in cash.