Sanofi, Novartis and GSK, all multinational pharmaceutical firms, raced to acquire domestic formulations business from debt riddem Elder Pharmaceuticals.
Sanofi and GSK have put in non-binding bids while Novartis signed a non-disclosure deal with the indebted company. Sanofi appointed HSBC as its investment banker while private equity funds started negotiations to join the bidding process. This was stated by three sources that were familiar with the transaction. Elder Pharma mandated Japanese bank Nomura and Ernst & Young (E&Y) to look for potential buyers.
E&Y, the company's advisor has completed vendor due with a diligence report to undertake to ascertain the real value of assets that are being sold. Potential buyers received the diligence report according to sources. The said investors will submit their final offers after analysis based on the vendor diligence report.
Representatives for Sanofi, Novartis and GSK did not want to give comments on said report. Elder Pharma's chairman and managing director Jagdish Saxena did not disclose any information after inquiries on the issue.
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