Glaxo, Sanofi chasing Piramal - source

NEW YORK - GlaxoSmithKline PLC and Sanofi Aventis SA have emerged as bidders for Indian drug company Piramal Healthcare Ltd, with the sale price perhaps going as high as $1.5 billion, a source familiar with the situation said on Friday.

The auction is at an early stage, and not likely to be resolved soon, but is competitive, the source said.

"There are lots of companies in the mix, including Glaxo and Sanofi," the source said.

Officials could not be reached at Piramal's U.S. offices in Edison, New Jersey. Spokesmen for Glaxo and Sanofi-Aventis said they could not comment on rumor or speculation.

On its Website, Piramal Healthcare Ltd describes itself as one of India's largest pharmaceutical companies that focuses on nine disease areas and had revenue of $602 million in 2006-2007.

The business includes custom manufacturing, in which it helps formulate and package drugs for other companies on a contract basis, with operations in North America, Europe and Asia.

Piramal Healthcare is the biggest business of Piramal Group, which describes itself as a spectrum of businesses, including diagnostics, glass manufacturing and healthcare.

A deal for Piramal Healthcare could further Glaxo's strategy to build its presence in emerging markets. The British drugmaker plans to explore small and medium-sized deals, rather than "be distracted by large-scale M&A," CEO Andrew Witty said on Thursday.

Analysts have predicted Sanofi will target medium-sized companies to boost its growth after recent moves by Sanofi to acquire vaccines maker Acambis and Czech generic drug group Zentiva.