During the first quarter of 2009, sanofi-aventis completed the offer on Zentiva, which will provide a platform for growth in branded generics in Central and Eastern Europe, Turkey, and Russia. Zentiva is fully consolidated by sanofi-aventis from March 31, 2009.
In addition to Zentiva, the generics business has been further strengthened in April 2009 by the completion of the acquisitions of Kendrick (one of Mexico's leading generics manufacturers) and Medley (Brazil's third-largest pharmaceutical company and no.1 generics manufacturer).
On a 2008 proforma basis, these three acquisitions take net sales from generics to approximately euro 1.2 billion, compared with euro 349 million in 2008. These deals are in line with the strategy of reinforcing our presence in branded generics and expanding our product portfolio in emerging markets, which are characterized by strong growth, low or average disposable incomes, and competitively-priced pharmaceutical products.
Sanofi-aventis has recently acquired BiPar Sciences, Inc., a privately held U.S. biopharmaceutical company which is developing novel tumor-selective approaches for the treatment of different types of cancers. Under the terms of the agreement, the purchase consideration will be contingent on milestone payments linked to the development of BSI-201, but will not exceed $500 million.
Sanofi-aventis generated a high level of cash flow from operations in the first quarter of 2009 (euro 2,755 million), more than adequate to finance capital expenditure of euro 392 million and acquisitions of euro 1,851 million (mainly Zentiva, including net debt of euro 551 million). Free cash flow for the quarter was
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