The sale process is entering a new phase, in which the French multinational is set to receive binding bids for the business between late February and early March, said one person familiar with the matter.

Medley, once the leader in Brazil’s generics segment and now ranked third among the largest players, was put up for sale by Sanofi last year.

The multinational’s initial expectation was to raise about $1 billion (around R$5.4 billion) from the asset, according to sources. Bids from Brazilian groups point to figures of around R$2 billion. The expectation is that Sun Pharma may be willing to make a larger outlay to enter the market as one of the sector’s biggest players.

In addition to strategic investors, Vinci Partners is the only financial investor eyeing the deal. Valor has learned that the fund could team up with one of the domestic groups to move forward in negotiations.

Sources say Sun Pharma is interested in Brazil’s generics market and, if the acquisition goes through, could reshape the segment in the country. Valued at $44 billion on the stock market and with a vast drug portfolio, Sun Pharma is known for its low-cost policy, which could put pressure on competing pharmaceutical companies.

The Indian drugmaker already operates in Brazil through imports of medicines produced in other countries, with a presence in the government and hospital markets. According to industry sources, so far no Indian laboratory has manufacturing facilities in the country.

“The advantage of the Indians is their control over raw materials. Medley would give them a brand with a good reputation and an important portfolio, but I don’t see a potential acquisition of factories in Brazil [by Indian players] as a driver of change in the industry,” said an industry executive, speaking on condition of anonymity.

According to this executive, drug production costs in India are “certainly” lower than in Brazil and, even with import costs, Indian products can reach the Brazilian market at lower prices. “Having a local industrial asset will not necessarily mean being even more competitive,” he said.

Companies interested in the asset are currently in the performance presentation and due diligence phase.

The French multinational bought Medley in 2009 for about R$1.5 billion, taking the lead in Brazil’s local generics market. The drugmaker previously belonged to the Negrão family. At the time, the acquired company had annual sales of around R$500 million. Sources interviewed for the report say the company’s EBITDA is around R$200 million.

When contacted, EMS confirmed its interest. Biolab, Hypera and Vinci Partners declined to comment. Sun Pharma did not immediately respond to requests for comment.

Sanofi told Valor that, as the company advances in its global transformation to become an R&D- and AI-driven biopharmaceutical leader focused on vaccines and innovative medicines, it “is evaluating strategic options for the Medley generics business to ensure its continued growth and success.”

The multinational also said that, following the announcement of Medley’s divestment process in August 2025, the drugmaker is exploring opportunities with potential partners whose vision aligns with its strategy. “We remain fully committed to Medley’s mission to democratize access to healthcare in Brazil, maintaining its leadership position in the generics market achieved through excellence and innovation.”