French group’s generics arm, valued at R$1.5bn-R$2bn, eyed by major Brazilian players and Indian companies.
French multinational Sanofi is receiving on Wednesday (10) the nonbinding proposals for Medley, one of the pioneering brands in Brazil’s generic drug market, according to information obtained by Valor. The business is valued between R$1.5 billion and R$2 billion, according to sources familiar with the matter.
Large Brazilian and foreign pharmaceutical companies are competing for the asset, considered the last major gateway into the generics market. The transaction is also seen as the only one capable of rebalancing competitive dynamics—or even reshaping the ranking of the largest players—in the sector. “Whoever wins the deal enters the market with scale,” said an industry executive, speaking on condition of anonymity.
Aché, Biolab, Cimed, Eurofarma, EMS, Hypera, and União Química are among the Brazilian groups expected to submit bids. Indian laboratories, including Torrent, are also preparing offers.
Medley, once the generics segment’s leader and now the third-largest player, was put up for sale this year. Sanofi initially hoped to raise about $1 billion from the asset, according to a person familiar with the matter.
About 60 groups reviewed the business and assessed Medley’s financial data. According to sources, at least 20 bids are expected, with valuation multiples ranging from 8 to 12 times the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).
Five groups will be shortlisted by February, when the binding offer stage begins. Sanofi expects to conclude the deal in May.
Executives interviewed off the record pointed out that Brazilian groups such as EMS and Hypera—the segment’s leader and runner-up, respectively—would face greater overlaps in their product portfolios if they acquire the business. For a pharmaceutical company with less exposure to generics, the acquisition would be more strategic. For that reason, foreign companies, especially Indian players already operating in Brazil, would gain a “fast pass” if they secure the deal, with a significant boost in market share.
Sanofi bought Medley in 2009 for about R$1.5 billion, taking the lead in Brazil’s generics segment. The pharmaceutical company, then owned by the Negrão family, generated annual sales of roughly R$500 million. Sources told Valor that Medley’s EBITDA today is around R$200 million.
In a statement, EMS Vice President Marcus Sanchez said the company “closely monitors market developments and continuously evaluates strategic assets put up for sale.
”The company “remains attentive to opportunities that could strengthen its presence in the pharmaceutical sector and expand access to healthcare,”
he added.
Cimed, also in a statement, said it “continues to evaluate the asset and maintains its interest in the deal.”
Aché and Eurofarma confirmed that they will present proposals. Lazard, Torrent, and União Química did not return requests for comment by publication time. Biolab and Hypera declined to comment.
Sanofi, in a statement, said it is “advancing in its global transformation to become a research- and development-driven biopharmaceutical leader, strengthened by AI and focused on innovative medicines and vaccines.”
“At this moment, as announced with the appointment of Lucia Rossato as Medley’s managing director in July 2025, Sanofi’s priority is to consolidate the independence of its generics business unit, initiated in February 2025,”
the company said. This independence process aims to unlock Medley’s full potential as a leader in generics, with greater autonomy to innovate, grow, and respond quickly to market demands.
Source: Valor International
