By Thomas Keating


Paris-based pharmaceutical company Sanofi-Aventis agreed to acquire U.S.
consumer products makers Chattem Inc. Dec. 21 for $1.9 billion, extending 
Sanofi's efforts to grow via small and midsize acquisitions.



Sanofi said the deal is likely to propel it to become the world's
fifth-biggest over-the-counter drugs company by revenue, from No. 6. It
estimates the world market to be worth about $20 billion a year and
executives said they expect the company to outpace the market's expected
annual 3% growth rate.



Sanofi-Aventis makes diabetes treatment Lantus (insulin glargine), a
long-acting basal insulin analogue, and Tritace (ramipril) an ACE inhibitor
indicated for the treatment of hypertension and nephropathy.



Starting Jan. 1 the company will also exclusively sell the injectable iron
product Ferrlecit, used to treat iron-deficiency anemia in end-stage renal
disease patients on dialysis. Ferrlecit is currently supplied and
distributed by Watson Pharmaceuticals from an agreement with Sanofi-Aventis
that is set to expire Dec.31.



Sanofi-Aventis said most of the benefits from the Chattem deal would come
from expanding Chattem's products outside the United States. Sanofi-Aventis will also hand its Allegra antihistamine prescription drug to Chattem to be converted
into an over-the-counter product.