Carlyle Group and Sanofi SA's India unit, Sanofi India Ltd., are in separate talks to buy the India's Elder Pharmaceuticals Ltd. domestic drug formulations business. The deal was estimated to be in the area of US$400 million to US$450 million. Sources are saying that the deal is set for completion early next month. Sanofi India Ltd. said that the acquisition will help in the expansion plans of the local unit of France's Sanofi.

Sanofi India Ltd. is set to expand its foothold in the Indian generic market. The market generates more than 90% of drug sales for the US$13 billion domestic drugs industry.

Carlyle Group and Sanofi India declined to comment on the current status of the deal, while Elder Pharmaceuticals did not immediately respond to Reuters' request for comment.

Elder Pharma said that the company's board approved of the restructuring of the company business. Elder Pharma said that restructuring included raising capital, selling of assets and other strategic options that could reduce the company's debt.