SANOFI-AVENTIS ESTABLISHES NEW EUROPEAN GENERICS UNITS

French drug major Sanofi-Aventis has launched a new generics unit to boost its business in Europe. The move will establish five new companies, operating under the Winthrop brand name, in Switzerland, Italy, Belgium, Hungary and Poland. The new subsidiaries will bring the company's entire range of generic products under a single brand name, as well as streamlining existing units. In one example, the company's Liechenstein unit will be merged with the newly incorporated Winthrop Arzneimittel GmbH in Germany.

Company sources hope the new European subsidiaries will make it one of the leading producers in the region, where generics sales currently total some EUR250mn (US$335mn) per year. Despite this relatively small proportion of the overall pharmaceuticals market, the move is indicative of a growing trend. Swiss drugmaker Novartis already has a generics unit, Sandoz, and Sanofi-Aventis' decision to establish a Central European presence for Winthrop may reflect the growing threat from regional producers including Hungary's Gedeon Richter. Additionally, government moves to restrain reimbursement costs throughout Western Europe may also continue to drive this trend.