French eye-products firm Novagali said to be in takeover talks with Sanofi-Aventis and considering IPO, says Les Echos; Good lixisenatide data

French ophthalmology pharmaceuticals company Novagali is in talks with several groups, including fellow France-based drug major Sanofi-Aventis SA, and is also considering a possible initial public offering, according to the local newspaper Les Echos, which cited the eye firm's chairman, Jerome Martinez, as its source.

The company has enough cash to last until the end of this year and needs refinancing of about 20 million euros ($26.9 millon) to 30 million euros around the third quarter of this year, Mr Martinez told Les Echos. Novagali cancelled a planned IPO in early 2008 because of the financial crisis, the newspaper noted.

Sanofi-Aventis marked its first forray into the ophthalmology market last year, with a $542 million deal to buy privately-held eye disease company Fovea (The Pharma Letter October 1, 2009). At the time, chief executive Chris Viehbacher said the acquisition '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 health care market, reducing our risk profile while focusing on patient needs.' However, the drugmaker declined to comment as to whether it is in talks to acquire Novagali.