Sanofi said that it may further increase its 25% in Zentiva after two years. Sanofi acquired c25% stake in Zentiva at CZK1,300 from Warburg Pincus and management. We believe that the acquisition should also create synergies and opportunities for co-operation between the two companies. We believe that Zentiva may produce generic versions of Sanofi’s original drugs before their expiry allowing it to build market share ahead of other generics. This would also allow Sanofi to retain part of the revenues it would otherwise loose to generic producers. In addition, Zentiva may use Sanofi’s distribution network in Western markets. Other potential areas for co-operation include R&D and joint marketing. We see the acquisition as positive for the stock and reiterate our Buy recommendation.