French drug maker Sanofi has entered into an agreement to acquire the animal health division of Indian firm Dosch Pharmaceuticals for an undisclosed amount.
Sanofi in a statement said that its animal health division Merial has entered into a binding agreement to acquire the animal health division of Dosch Pharmaceuticals, creating a market entry for Merial in the country’s strategically important and growing animal health sector.
The agreement is subject to regulatory approval and is expected to finalise sometime in the first half of 2013, it added.
The company, however, did not disclose financial details.
“The acquisition of Dosch’s Animal Health Division will be a significant milestone for Merial and give us a strategic platform for our development in the Indian market,” said Jose Barella, Chief Executive Officer of Merial.
Barella added that combination of Dosch’s animal health brands and distribution strength, along with the robust new product pipelines from both Merial and Dosch, will strongly position Merial to become rapidly a major animal health player in India.
The Mumbai-headquartered Dosch Pharmaceuticals is a diversified pharmaceutical company, primarily operating through two divisions, animal health and exports.
“The animal health division being acquired by Merial has more than 86 products under 50 brands for ruminants, poultry and companion animals,” the statement said.
Products include an extensive range of animal health therapeutics and nutritional feed supplements. Within the animal health division, Dosch has a 279 member sales force, covering 18 Indian states.
“The strong nationwide sales, marketing and distribution network of Dosch, along with established products and people will be an ideal platform for Merial to enter the fast developing animal health market of India,” Sanjay Doshi, Chairman and Managing Director, Dosch said.
Dosch CEO Sharat Tugnait and his management team will manage the future combined operations of Dosch and Merial in India under the supervision of Merila’s Mayank Parekh, the company said.
The animal health market in India is estimated at more than € 350 million in 2012, and is experiencing annual double digit growth.
India is home to the world’s largest herd of cattle and buffalo, second largest herd of sheep and goats, and has the world’s fifth largest population of poultry. The country is also the world’s largest milk producer.