Sanofi-Aventis / Shantha Biotechnics Limited

Vaccine-Preventable Infectious Diseases (Hepatitis B, DTP, Hib, Cholera, Polio)

$932M Sanofi Pasteur 2009 net sales (EUR 932M, +16% YoY)

Disease Overview

Pediatric vaccine-preventable diseases (diphtheria, tetanus, pertussis, hepatitis B, Hib, cholera, polio) account for substantial childhood mortality in low- and middle-income countries. Affordable WHO-prequalified combination vaccines, supplied through UNICEF and Gavi mechanisms, are the primary tool for reducing this burden.

Competitive Landscape

In 2009, the global pediatric vaccine market for emerging-market combinations was dominated by GSK (Tritanrix-HepB/Hib), Sanofi Pasteur (then via Pentacel/PasteurMérieux), and rapidly emerging Indian/Asian producers including the Serum Institute of India, Panacea Biotec, Biological E, and Shantha. Shantha had pioneered India's first recombinant hepatitis B vaccine (Shanvac-B, 1997), introduced the WHO-prequalified Shan5 pentavalent (DTwP-HepB-Hib), and developed the oral cholera vaccine Shanchol and inactivated polio vaccine ShanIPV. Sanofi Pasteur's $784M acquisition via the ShanH/Mérieux Alliance vehicle gave the buyer a low-cost manufacturing base, WHO-prequalified pentavalent product, and direct access to UNICEF/Gavi tenders that drove pentavalent dose volumes from ~50M (2005) to ~300M annually (2016) (Gavi/UNICEF supply data). The deal was part of CEO Chris Viehbacher's emerging-markets vaccine push — four vaccine deals in 12 months — and rebalanced Sanofi against GSK in tendered low-cost segments. Subsequent WHO-prequalification suspensions (2010) on Shan5 created near-term setbacks but were resolved.