Sanofi-Aventis' latest shopping spree includes France's Fovea and deal with Merrimack

Confirming its ambitious expansion plans, French drug major Sanofi-Aventis has signed a binding agreement for the acquisition of French firm Fovea Pharmaceuticals, valuing the business at some 370 million euros ($542 million) and entered into a licensing deal with the USA's Merrimack Pharmaceuticals to gain rights to a monoclonal antibody, in a deal that could cost it up to $530 million.

Moreover, Sanofi-Aventis chief executive, Chris Viehbacher, says he is still looking for deals. Mr Viehbacher, who has already spent $9 billion buying companies this year, told Bloomberg News just ahead of the latest announcements that he is looking to build his portfolio of vaccines, biotechnology treatments and over-the-counter medicines through more acquisitions. "There will be more shopping on the horizon," he said.

Privately held R&D biopharmaceutical company focused on ocular diseases, Fovea has a portfolio of three clinical compounds, a unique technology platform and several discovery programs dedicated to back of the eye diseases. These are FOV 1101, an eye drop, fixed dose combination of prednisolone and cyclosporine, currently in Phase II for the treatment of persistent allergic conjunctivitis; FOV 2302, an intravitreal formulation of a plasma kallikrein inhibitor, in Phase I for retinal vein occlusion induced macular edema; and FOV 2304, a potent antagonist of bradykinin B1 receptors, active by eye drop, scheduled to enter in Phase I by November 2009 for the treatment of diabetic macular edema.

"Fovea is a unique opportunity to lay the foundation stone of an ophthalmology franchise," declared Mr Viehbacher, which "will create new strategic positions for Sanofi-Aventis in the very promising and dynamically growing ophthalmic area driven by unmet medical needs and aging population. This acquisition furthers our strategy of accessing high-growth segments of the healthcare market, reducing our risk profile while focusing on patient needs.â"

Under the terms of the agreement, Sanofi has agreed to purchase Fovea for a total enterprise value of up to Euros 370 millions, including an immediate upfront payment and subsequent milestone payments related to the three clinical compounds.