Sanofi-Aventis in its latest quarter made headway toward doubling its OTC business by 2014, reporting 7.4 percent organic growth and 26.3 percent growth including acquisitions in the segment.

Concurrently with its Oct. 30 third-quarter earnings statement, Sanofi announced its latest OTC acquisition - French health and beauty supplement firm Laboratoire Oenobiol, which makes the tan-enhancing supplement Oenobiol Solaire .

Sanofi's net OTC sales for the July-September period were at $525.4 million (356 million euros under Oct. 30 conversion rates). Overall net sales climbed 6 percent at constant exchange rates to $10.9 billion, while net income was up 7.7 percent to $3.3 billion.

"We're not world champions in OTC," said CEO Chris Viehbacher, echoing a point Sanofi made early in 2009. "But we do have a [$2.2 billion] business, and that means you can find some bolt-on acquisitions and start to grow that business."

With brands including Doliprane acetaminophen, Maalox heartburn remedy and Lactacyd feminine care products, Sanofi says it is currently No. 5 worldwide in OTC drugs.

The Paris-based firm laid out in February its plan to double the OTC segment's size in five years through acquisitions of firms available in the area of $150 million (¹ Also see "Sanofi-Aventis Acquisitions Could Double OTC Sales By 2014" - Pink Sheet, 16 February, 2009.).

Its latest bolt-on, Oenobiol, tallied $84.4 million in sales during its fiscal 2009, 85 percent of which came in France, Sanofi said.

With the OTC acquisitions Symbion Consumer and Zentiva already under its belt in 2009, Sanofi is becoming "increasingly successful in doing acquisitions," noted Hanspeter Spek, executive VP of pharmaceutical operations (² Also see "Sanofi Includes OTCs As Key Touchstone On Growth Chart" - Pink Sheet, 3 August, 2009.).

Speaking of Oenobiol, "We will, of course, try to bring this product to other markets in Europe and outside of Europe in Latin America," Spek said.

- Dan Schiff ( ³ d.schiff@elsevier.com )

Sanofi Builds OTC Business Through Organic Growth And Bolt-Ons

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