Sanofi, Carlyle in talks to buy Elder Pharma's India formulations business-sources

July 24 Wed Jul 24, 2013 6:27am EDT

July 24 (Reuters) - Sanofi SA's India unit and Carlyle Group are in separate talks to buy the domestic drug formulations business of India's Elder Pharmaceuticals Ltd for $400 million-$450 million, three sources with direct knowledge of the matter said.

A deal could be signed as early as next month, one of the sources told Reuters. All the sources declined to be named as they were not authorised to speak to the media.

The acquisition would help Sanofi India Ltd, the local unit of France's Sanofi, expand its foothold in the Indian generic market, which accounts for more than 90 percent of drug sales of the $13-billion domestic drugs industry.

Sanofi India and Carlyle declined to comment, while Elder Pharmaceuticals did not immediately respond to a Reuters request for comment.

Elder Pharma said on July 11 its board had approved restructuring of the company business by either raising capital, hiving off assets or through other strategic options to reduce debt.

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