Covance, Sanofi-Aventis Close Research Deal

PRINCETON, N.J. (AP) -- Drug development services company Covance Inc. said Friday it closed a research and development deal with Sanofi-Aventis SA, one of the world's biggest drug companies.

Covance which is based in Princeton, N.J., said last month it will provide drug development services to the French drug maker and receive an estimated $1.2 billion to $2.2 billion in payments.

Covance has said Sanofi-Aventis will use its services for drug discovery support, toxicology, chemistry, clinical testing, central laboratory, and market access services. Covance also will buy Sanofi-Aventis facilities in Porcheville, France, and Alnwick, U.K., for about $25 million.

The two facilities give Covance the ability to offer chemistry, manufacturing and controls services, which can include drug formulation and ingredient manufacturing.

Shares of Covance rose 81 cents to $47.32 in Friday afternoon trading, while U.S.-traded shares of Sanofi-Aventis climbed 33 cents to $35.12.

More in Operations