Sanofi-aventisFrench pharmaceutical giant Sanofi Aventis’ proposed deal to acquire a majority stake in Mumbai-based Piramal Healthcare has fallen through due to differences over valuation, two persons familiar with the development told

“Sanofi Aventis had put a valuation of over Rs 300 per share for Piramal Healthcare. This price, however, was not acceptable to the promoters,” a merchant banker familiar with the development said.

On Thursday, Piramal Healthcare’s scrip rose by 4.15% to close at Rs 201.80 on BSE as against the BSE Healthcare index, which moved up by 1.75%.

Sanofi Aventis is already among the top-15 companies in India and the proposed deal would have strengthened its presence in the country.

Besides Piramal Healthcare, the Piramals also control Piramal Life sciences, a separate listed research firm, which was hived out of Piramal Healthcare in 2008. The research arm was not included in the promoters’ plans to sell the pharma business.

Another senior pharma industry official, who has been briefed about the proposed deal, added that talks between Sanofi Aventis and Piramal Healthcare reached an advanced stage before collapsing. Earlier, the UK-based GlaxoSmithKline was also reportedly in the fray. But this official said talks with GSK had not moved forward beyond the initial stages.