Novartis to buy Sanofi-Aventis' 49% stake in Chiron Behring JV for $22.4 million

Aiming to resolve a long-running dispute relating to the rabies vaccine Rabipur, French drug major Sanofi-Aventis’ (Euronext: SAN) Aventis Pharma has agreed to sell its 49% equity holding in India-based Chiron Behring Vaccines Pvt Ltd (CBVPL) to Swiss major Novartis (NOVN: VX), for a consideration of around $22.4 million. The transaction is expected to close before year end.

Aventis Pharma has agreed to continue to provide certain utilities and services to the Ankleshwar plant of CBVPL for a period of three years from the date of closing on mutually agreed terms, noted the Indian PharmaBiz news service. With this sale of stake, the pending disputes between the company and Novartis Vaccines & Diagnostics, will stand resolved and all legal proceedings filed in connection with such disputes will be unconditionally withdrawn.

CVBPL manufactures the anti-rabies vaccine Rabipur at its plant in Ankleshwar, which was until February 2009 distributed in India by Aventis and presently distributed by Novartis Healthcare. The dispute was related to Novartis’ objection of its partner selling its own competing product that hurt sales of Rabipur.