The maximum annual production capacity for the newly acquired factory is 38.5 million injection ampoules, 500 million tablets and 122 tonnes of ointment, according to the LETA news agency.

Hoechst-Biotika is one of four major producers of pharmaceuticals in the Slovak Republic, ranked third in the market behind Slovakofarma and Biotika and ahead of state-owned Imuna. Sanitas' decision to buy Hoechst-Biotika comes something of a surprise, as Biotika had been tipped to gain control of the joint venture.

Sanofi-Aventis - and Aventis before it - has been angling to offload Hoechst Biotika for some time, manly because its production accounted for just a fraction of one per cent of its revenues.

Indeed, interest from western companies in Slovakia has been limited at best; until very recently Aventis was the only multinational with a presence in the country, and that predated the division of Czechoslovakia. The accession of the Slovak Republic to the Europan Union could change that, but it is interesting that a company from another EU accession company has stepped up th the plate.

The value of the transaction is estimated to amount to €12.7 million.