Shaky Chiron venture casts cloud on Aventis

Aventis Pharma on Friday said a possible termination of its joint venture with Chiron Corp of the US "could have a significant impact on the activities profile and on the medium-term growth perspective of the company (Aventis Pharma)."

Aventis holds 49 per cent in Chiron Behring Vaccines Pvt. Ltd., while the rest is held by Chiron, Aventis said.

The joint venture was formed in 1998 for the manufacture of the anti-rabies vaccine, Rabipur, and for the grant of distribution rights in India to the company for certain Chiron vaccines, Aventis Pharma said in a release.

Chiron Behring makes Rabipur at its plant in Ankleshwar in Gujarat.

"Consequent upon the change in control of the company due to Sanofi-Synthelabo, France, acquiring the majority stake in the parent company, Aventis, France, the company (Aventis Pharma) has notified Chiron of the change in control as required by the JV (joint venture) agreement," the Aventis Pharma release said.

"Chiron is thus required to inform the company within a period of six months whether it proposes to acquire the shares held by the company in CBVPL."

According to Aventis, Chiron has the option to buy out Aventis Pharma's stake in CBVPL and terminate the distribution rights.

Aventis Pharma Friday closed at Rs 791.35 on the National Stock Exchange, down a tad over Thursday.